Rockdaddy

Penny options on OVTI (and others) were not available on the spreads via eTrade. See their explanation in prior post and below: Here is what eTrade says when I ask why: Thank you for your message regarding placing a trade. Per the Securities and Exchange Commission (SEC) rules governing the trading of options contracts, standard options quoting and trading guidelines, premiums over $3 trade in dime(0.10) increments and options with premiums under $3 trade in nickel (0.05) increments. Most brokerage firms should be following this rule. There are some options that have been approved to trade in penny increments, most tend to be large companies AAPL, AMZN, etc. You can always check the SEC website to get a list. What is the option you were attempting to place a trade for?

Not sure if this is the right forum, but thought I'd ask anyway. This question involves the more granular pricing of options. I currently use eTrade just because I get 2 months of commission free trading when I funded my account. I'll probably switch to IB when this promo period expires. For example, on a particular trade, I see other members getting prices like $1.71, $1.73, etc. but when I put in my limit orders it only allows me to input prices at $1.70 or $1.75. Here is what eTrade says when I ask why: Thank you for your message regarding placing a trade. Per the Securities and Exchange Commission (SEC) rules governing the trading of options contracts, standard options quoting and trading guidelines, premiums over $3 trade in dime(0.10) increments and options with premiums under $3 trade in nickel (0.05) increments. Most brokerage firms should be following this rule. There are some options that have been approved to trade in penny increments, most tend to be large companies AAPL, AMZN, etc. You can always check the SEC website to get a list. What is the option you were attempting to place a trade for? If you have any other questions please contact us at 1-800-503-9260. Sincerely, Why can't I put my price limits in for variances of .01-.04? It only allows limit prices at .05 increments? Am I missing something or are these just market orders that are getting filled at this price? Are other firms offering more specific prices? These are usually spreads. I'm not fond of market orders since pricing getting in and out of these trades is key. thanks