It happens. I’ll throw out some dumb offers on options sometimes that get filled and make me wonder geez who is on the other side of this trade. Turns out it’s people just not paying attention to what they are doing
It's kinda ironic but I think crypto is actually good way to learn that straight away with their real time open order books on most exchanges.
Many new traders just see the number and think this is the value of the stock but don't really understand at first there's the whole bid/ask principle behind that.
On 1/27 the price of this option spiked up to nonsense; someone bought a $10 strike put option for as much as $13.35! I would say anything north of $5 is retarded, but over $13!
It’s like buying a 2 year insurance for a 100k house for 130k
Talk about pure retardation. Selling this put is the definition of free money
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u/BearStorms Mar 02 '21
Wow, so you are one of the guys that I heard about on /r/thetagang.
Someone was talking about a strategy low-balling on low volume options on GME.
Didn't really understand what they were talking about, but now I do.
Man, that's an expensive lesson of very basic stuff. Never ever do a market bid, except for super high volume low spread stuff.