who buys and sells cheap otm options? QQQQ trades at 40 Oct 50 call trades at 0.01 I guess the buyer can buy a bunch of contracts cheap and hope for a big move. Risky but if he hits it could be big. Is this the idea? And Have no idea why anyone would sell options for a penny. What am I missing here?
If I were short any October option I would gladly cover it for a penny, and anyone who is short that call is a potential buyer. Who would sell? The longs might sell. MMs long extra 48s and 49s might sell. People who love selling high probability options might sell. Mark
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