In early 2007, the U.S. securities option exchanges introduced a pilot program to trade certain equity options with a quoted price of less than $3.00 in $0.01 increments. In addition, all IWM, SPY and QQQ options, are quoted in $0.01 increments. Options not included in the pilot as well as those with a quoted price above $3.00 trade in $0.05 increments.
All of the exchanges have the ability to provide executions in penny increments and the CBOE posts a list of option classes eligible to trade in $0.01 increments on its website.
For information on submitting penny increment prices for options trading in nickels or dimes, click here.