The Penny Interval Program allows options for some related stocks and indexes to trade in increments of $0.01. The minimum increments for all classes in the Penny Pilot (except for QQQ, IWM, and SPY) are based on price.
Options related to equities and indexes that are in the Penny Pilot Program are quoted in increments of $0.01 for option series with a premium below $3, and $0.05 for all option series with a premium of $3 and above.
Options related to equities and indexes that are not in the Penny Pilot Program are quoted in increments of $0.05 for option series with a premium below $3, and $0.10 for all option series with a premium of $3 and above.
The minimum increment for all option series in QQQ, IWM, and SPY is $0.01.
Disclosures
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Firstrade does not guarantee favorable investment outcomes, and there is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. To learn more about the risks associated with options, please read the Characteristics and Risks of Standardized Options before you begin trading options.