why are there so many options that are terrible deal?

[donnap]

Currently you can sell a 1.5 put for $0.15 and the stock is $1.47. Can that count as free money?

Why would anyone give you free money?

 

[MrMuppet]

Has anyone checked if there is a dividend or similar corporate actions outstanding? Options are priced on forwards, not cash

 

[.sigma]

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.

 

[IronFist]

Correction: You will NOT pay $2.60. You will pay $3.00, the strike price, net $2.60 taking into account the premiums. But this option is priced wrong. An option is never priced below its intrinsic value. Its intrinsic value is at least (strike - underlying ) cuz it's ITM.

Overall it is NOT a good deal even if the option is priced correctly. This is everybody on ET here is saying. The opportunity cost is not worth it to buy underlying via option assignment.

I see this all the time. Maybe it was simply happening yesterday because it was right before expiration. Will check additionally next week.

 

[Sig]

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.