Why isn't there strikes closed to ITM in SPY ?

[SumZero]

SPY is currently at 263

Looking at the options 28 and 30 days, we see strikes 270, 270.5, 271, 271.5 or 265.5, 266, 266.5, 267 available.

Why isn't there something closer to ITM, like 262.5, 263, 263.5, etc. ? I just see 260 and 265 and nothing in between.

 

[lawrence-lugar]

Looking at the options 28 and 30 days

Why isn't there something closer to ITM

Far out, or further down the line in time...tends to generally be more vague in your options...of options.

The weeklies, nearest expiration, will have much more precision around the money in your option selections.

2018 ET,

 

[SumZero]

Thanks. I was specifically looking into something around 30 days. Just found strange that we see more variety of strikes far from ITM than closer to ITM.

Btw, how are the strikes created ? Is the exchange or the mm ?

 

[vanzandt]

Thanks. I was specifically looking into something around 30 days. Just found strange that we see more variety of strikes far from ITM than closer to ITM.

Btw, how are the strikes created ? Is the exchange or the mm ?

I think the reason is... nobody expected it to drop this far when the strikes were created. IE, its supposed to be up there around 272.

 

[SumZero]

Yep, that was the case before this drop.
I thought that when this happened that new strikes were, somehow, "created" (don't know how is the process).