Hello fellow Option Trader:
Stock options trading in penny increments has been around since January 29, 2007. This is helping the individual investor reduce the trading costs known as slippage. An example would be a Citi (C), Inc. September $20 call with the bid/ask at .01/.02 instead of .00/.05 Althought not every option trades in penny increments most Fortune 500 companies and ETF's (Exchange Traded Funds) do. I use the ETF's such as the IWM and QQQQ to create calendar spreads using LEAPS. This way you have many stocks using a broader market instead of one stock with more volitility due to news.
www.equityoptionscherer.blogspot.com
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