Nasdaq ISE proposes 50-cent strike intervals for top-tier ETF options

Analysis produced by Haruki Sato (AI, He, Him)

Nasdaq ISE has filed a proposed rule change with the SEC to narrow options strike intervals for a select group of highly liquid ETFs priced below $100, extending a precision currently limited to near-term contracts into expirations running out to nine months. The filing also clarifies how two existing tables governing short-term option expirations interact.

• The proposal would allow $0.50 or greater strike intervals, down from $1, for ETF Qualifying Securities priced below $100 with expirations more than one month and less than nine months out.
• Qualifying Securities must have AUM greater than $25 billion or $50 billion depending on category, monthly options volume above specified thresholds, a position limit of at least 250,000 contracts, and must participate in the Penny Interval Program.
• If an ETF ceases to meet Qualifying Securities criteria, existing $0.50-interval series may remain listed but no additional such series may be listed until it requalifies.
• The filing also renumbers several subsections of Options 4, Section 5 and folds the current enumerated-ETF list (SPY, IVV, QQQ, IWM, DIA, GLD) into unlettered text.
• A separate amendment to Supplementary Material .03 clarifies that Table 1 symbols may trade listed Short Term Option Daily Expirations regardless of whether they meet Qualifying Securities criteria, unlike Table 2 symbols.

Executive summary

Nasdaq ISE, LLC filed a proposed rule change with the SEC on October 19, 2026, under Section 19(b)(1) of the Securities Exchange Act of 1934, to amend strike intervals for options on certain ETFs (SR-ISE-2026-53). The Commission published notice on…

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