Does anyone else wish they had opt strikes of $2.50 for all stocks?

[nitro]

I do.

nitro

 

[nazzdack]

The yeses have it by a wide margin. In a lower-volatility environment, more strike prices is a good idea for customers. Floor traders and specialists would probably balk at it because they'd have to keep an eye on more strike prices.

 

[nitro]

Quote from nazzdack:
The yeses have it by a wide margin.

Yeah, I can't imagine anyone that has tried to put on a spread that hasn't wished for more strikes.

In a lower-volatility environment, more strike prices is a good idea for customers.

HUGE

Floor traders and specialists would probably balk at it because they'd have to keep an eye on more strike prices.

I don't see why this would add much work - it is mostly all autoquoted anyway.

nitro

 

[segv]

Quote from nitro:

Yeah, I can't imagine anyone that has tried to put on a spread that hasn't wished for more strikes.


HUGE


I don't see why this would add much work - it is mostly all autoquoted anyway.

nitro

Autoquoting is harder than you might suspect. Additional quotes translates to additional hardware, bandwidth, and software licenses. It is a very large cost with a very small return.

-segv

 

[Mercury77]

Quote from segv:

Autoquoting is harder than you might suspect. Additional quotes translates to additional hardware, bandwidth, and software licenses. It is a very large cost with a very small return.

-segv

The bandwith you talk about is an exchange problem, not a problem for the traders hardware and software costs are not a problem at all. I was a market maker at Euronext Amsterdam and we even asked for more strikes because it increases trading volume and so it increased the profits for the marketmakers. At euronext a lot of stocks, especially in the front months, have strike prices with the interval of 1 euro and for the customer this is ideal! It is absolutely ridiculous that in the US a lot of stocks trade with $5 strike prices.