When you consider how many option strikes are out there with no customer orders on the book, and only MM quotes, you can't expect MM to make tight, deep markets on most of the options. If they do, they get picked off when news comes out, without any possible benefit. They focus their competitive markets on the most liquid, highest volume stocks and options, that are near term. There are some MM that focus on the second tier options and longer dated options. They do less volume but have more vig on each trade. Keep in mind that a lot of the volume you see print, was done though a broker with their customer and BD relationships. Those trades are crossed. As an institutional client, you can have those relationships too. They will find liquidity for you for a fee.
Unfortunately, if you are a retail client, you have to assume when the markets are wide and have little size posted, that once you are in the trade, it will cost you money to exit too.
Bob
