Embarrassing Newbie question from Oldie

[OddTrader]

The stock is extremely low volume with a market cap under half a billion.

The stock has options, but they are essentially illiquid (volume near zero).

My 100% guess of the micro-structure is logically a MM would consider some limiting factors such as extremely low volume of stocks, open interest of calls, call/put ratio, current IV chain, not-too-large market cap, and others.

When the open interest of calls has been already close/over to the average availability of stock volume potentially, how could the MM offer you unlimited number of calls at whatever strikes you like, in case you really will later want to settle/acquire physical stocks that the MM could not supply (at whatever price) for settlement after expiration?

 

[bone]

Where.....do options come from? Option storks?

I've been in the game for a long time and never really understood this to the level of detail I need to now.

There is a stock that I want to buy calls on. A LOT of calls. Because I have reason to believe that it will sky-rocket by end of week.

The stock is extremely low volume with a market cap under half a billion.

The stock has options, but they are essentially illiquid (volume near zero).

How does one acquire options, when the exchange has no bids/asks?

Is there a MM that I can potentially acquire the options from?

Ask the exchange who lists the option for a RFQ ( request for quote ). The exchange will then forward the request to the designated market maker. If you know how to confirm how fair the premium price quoted to you is, you will likely not like the quote given the liquidity vacuum you described. IMHO, if you feel so sure and confident about an imminent rally, then buy the stock. The market maker in the option will price the call option (if that be the case) with plenty of room to hedge with the underlying stock and leave plenty of meat on the bone for himself.