Interactive Brokers announced today that they would offer options priced to the penny: Penny Priced Options. IB is well ahead of the other brokers and exchanges on this one, so there are some interesting footnotes to be aware of, but nothing to scare me away.

Before this announcement, the smallest increments for options was $0.05, so it should be interesting to see how the spread collapses (or doesn’t collapse) on the most heavily traded options, like the options on the QQQQs and the popular day-trading stocks.