How to get options with distant strike?

[thecoder]

Let's say stock price is at $3 and I want to buy some Call options
with strike say 3x the current stock price and maturity as long as possible
(ie. 2+ years, LEAPS etc.), but the broker does not have this strike available.
What to do to get such options?

 

[Option_Attack]

You could try this: http://www.cboe.com/aboutcboe/new-strike-price-requests

"If you'd like to request new strike prices for an option that trades at Cboe, please call our Strike Price Request line, at 1-877-THE-CBOE, and select choice 4 from the main menu. Please understand that not all requests can be accommodated."

 

[xandman]

Tell me when your ready to transact. I'll make a market for you.

 

[thecoder]

Tell me when your ready to transact. I'll make a market for you.

But how? Explain pls.

 

[xandman]

But how? Explain pls.

On second thought, your not worth fleecing. You won't get a market.

https://www.optionseducation.org/toolsoptionquotes/optionscalculator

 

[xandman]

Hypothetical:

Stick with liquid option markets. There are a lot of people with crazy option ideas on ET lately. I have almost given up on this forum.

 

[thecoder]

On second thought, your not worth fleecing. You won't get a market.

https://www.optionseducation.org/toolsoptionquotes/optionscalculator

Man, of course I know the usual option pricing method like Black-Scholes.
For a listed equity with options the strike usually does not go over 2x OTM.
What if one needs 3x OTM?

 

[xandman]

Then, you request the strike through the resource that @Option Attack provided.

So, let's say the guys at the CBOE stop laughing their asses off and fulfills your request. Who will make the market? Answer: Nobody.

Additionally, you can't post an order for less than a penny. So, you will be bidding double at the least.

 

[thecoder]

Then, you request the strike through the resource that @Option Attack provided.

So, let's say the guys at the CBOE stop laughing their asses off and fulfills your request. Who will make the market? Answer: Nobody.

Additionally, you can't post an order for less than a penny. So, you will be bidding double at the least.

Why? Isn't it still a fair game for both sides regardless of strike and maturity?
And: actually I was interested in longer time frames than the usual 2 years of the LEAPS.
For example using BSM calculation for S=$3, K=$9, t=5y, Vola=40% --> C=$0.23, P=$6.23

 

[xandman]

Why? Isn't it still a fair game for both sides regardless of strike and maturity?

It's fair. But, is it worth the time to tie up the capital that long? Let's say you do 100,000 contracts for a penny. In this theoretically fair world, a guy takes your $1000 dollars where a whopping $590 is all edge. Now he has to cover $300,000 notional risk (depends on his margin/haircut) for your $500 dollar option? Not gonna happen.