RE: [RT] Minimum price increment

["Brendan B. Boerner" <brendan@xxxxxxxxxxxxxx>]

<FONT face="Bookman Old Style" color=#0000ff 
size=2>Thanks Dan.
<FONT face="Bookman Old Style" 
color=#0000ff size=2> 
<FONT face="Bookman Old Style" 
color=#0000ff size=2>Do you know how the minimum tick works for an option which 
is trading @ $3.00 +/- 0.xx?
<FONT face="Bookman Old Style" 
color=#0000ff size=2> 
<FONT face="Bookman Old Style" 
color=#0000ff size=2>Does is become $0.05 when the last trade was < $3.00 and 
$0.10 when the last trade
<FONT face="Bookman Old Style" 
color=#0000ff size=2>was $3.00 and up?
<FONT face="Bookman Old Style" 
color=#0000ff size=2> 
<FONT face="Bookman Old Style" 
color=#0000ff size=2>How is min tick enforced?  Will a broker not accept an 
invalid bid/offer if the bid / off
<FONT face="Bookman Old Style" 
color=#0000ff size=2>doesn't honor the min tick 
requirement?
<FONT face="Bookman Old Style" 
color=#0000ff size=2> 
<FONT face="Bookman Old Style" 
color=#0000ff size=2>Regards,
<FONT face="Bookman Old Style" 
color=#0000ff size=2>Brendan
<BLOCKQUOTE 
>
  <FONT face=Tahoma 
  size=2>-----Original Message-----From: Dan Goncharoff 
  [mailto:TheGonch@xxxxxxxxxxx]Sent: Wednesday, June 11, 2003 9:51 
  PMTo: realtraders@xxxxxxxxxxxxxxxSubject: Re: [RT] 
  Minimum price incrementfrom <A 
  class=moz-txt-link-rfc2396E 
  href=""><http://www.cboe.com/OptProd/EquityOptions.asp>:Premium 
  Quotation:Stated in points and fractions. One point equals $100. 
  Minimum tick for options trading below 3 is .05 and for all other series, 
  .10.RegardsDanGBrendan B. Boerner wrote:
  <BLOCKQUOTE cite="" 
  type="cite">Hello,

It's my understanding that for options below a certain amount ($3,
$5?)  that they trade in price increments of $0.05 and above that the
minimum price increment is $0.10.

I searched www.cboe.com and www.optionsclearing.com using keywords
such as "minimum price improvement increment" and didn't find the
details of these rules.

Can anyone point me in the right direction to find this info?

Thanks!
Brendan







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