DTE=0 with large time value/intrinsic value of a slightly ITM option?

This seems like a problem with low volume but I'm looking at SPY options expiring today that are slightly ITM and it looks that time value is almost the same as the intrinsic value.

For example SPY 300 PUT DTE=0 is currently 0.84 while SPY itself was around $299.50. This puts the time value at .34 which is almost the same as the intrinsic value of .50

It doesn't make sense to me why these would trade with such a high time value/intrinsic value ratio on the day of expiry but after thinking about it further, I guess it makes sense that the premium would compensate the option writer for taking such a large risk on the day of expiry.

Any other explanations?

 

10bps for 6 hours....

 

I don't follow

 

If you were long the put you are paying 10bps of time value for the privilege of being short for the rest of the day. That doesn’t seem unreasonable to me. Does it to you?

 

Got it

 

(And yes I did go long before this post <3)

 

I like these DTE=0 penny stocks.