Cboe Slashes Minimums for Magnificent 10 Index Options Trading
Published Date: 9/30/2025
Notice
Summary
Cboe Exchange is changing the smallest price step for options on the Magnificent 10 Index to make trading cheaper and easier, especially for prices under $3. This update helps investors, including everyday traders, by allowing more precise pricing. The new rules kick in soon after approval and could save money on trades.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Penny and Nickel Increments for MGTN
If you trade options on the Cboe Magnificent 10 Index (MGTN), the Exchange proposes the minimum price step be $0.01 for option series trading below $3.00 and $0.05 for series trading at $3.00 or higher. The Exchange filed the proposal on September 24, 2025 and intends to begin listing MGTN options in the fourth quarter of 2025, subject to SEC approval.
Penny Executions in Complex and AIM Orders
MGTN options will be eligible for complex order trading, which permits legs to execute in penny increments, and for the automated improvement mechanism (AIM) auction for simple orders, which also permits penny executions. This means penny executions may occur for MGTN options in certain order types and auction situations.
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