Has anyone checked if there is a dividend or similar corporate actions outstanding? Options are priced on forwards, not cash
Your perception is what creates these terrible deals. For every option strike there’s another strike with the opposite risk transfer. At any given moment there’s opportunities and shitty deals equalizing throughout spot and time. But personally I’ll usually stay away from options on cheap stocks, unless they are liquid and I find a RV play.
I see this all the time. Maybe it was simply happening yesterday because it was right before expiration. Will check additionally next week.
Did anything actually trade at that level? Quotes are often wide enough bro encompass nonsensical positions. That doesn't mean anyone actually trades there.