I found that many OTM options of stock are trading at $0.05. So one contract worths $5. Commission of IB is $1. What is the point to sell such options? Getting $4?
Do those options pricing models all assum the prices are normal distributed? Some guys said this is unrealisitic. Is this true? But all the people I know are using the BS model. If it has problem then many guys would have the similar problem.