Take a look at March ATM options on TJX. So the ATM options have a reasonable option prices, but the OTM calls and puts on either side of the ATM options have no bid at a dime. Guess what, TJX needs consecutive dollar strikes, not consecutive $5 wide strikes. And they wonder why the OI in OTM option chain is almost zero.
1) TJX may want to discourage speculation in its stock with the $5 strike price increment. 2) If you sold-long or sold-short, "at the market", in the OTM's, could you get filled at "zero"? Nice fill!
D is even more ridiculous. Why even bother with these options? Either get $2.5 or $1 contiguous strikes, or put these options out of their misery and delist it.
There could be "value" in keeping an eye on the O-T-M's when an earnings announcement is impending. GS may "know something" and tip it's hand with size. :eek: