ISE Introduces $0.50 Strike Price Intervals In Weekly Options
The International Securities Exchange (ISE) today announced that it has received SEC approval to introduce $0.50 strike price intervals in weekly options. The exchange began listing weekly options in the more granular $0.50 strikes yesterday, offering an expanded range of strike prices and potentially a lower cost of entry to investors who are using weekly options to effect their trading and hedging strategies. This new program extends to weekly options classes that currently trade in one dollar increments, and all other contract terms remain unchanged.
"The weekly options program has become one of the most popular product offerings and strongest growth areas since its industry-wide expansion two years ago," said Boris Ilyevsky, Managing Director of ISE's options exchange. "The introduction of $0.50 strike price intervals will attract further interest from investors who are seeking greater trading opportunities and the ability to more closely tailor their investment and risk management strategies."
The new program will apply to the ninety-three underlyings with weekly options classes that trade in dollar strike price intervals. Weekly options currently represent approximately 11.7 percent* of industry-wide options volume.
*Source: OCC/Tabb Group data through August, 2012.