you have to have sellers. this had to be prearranged.
Ken
@Kenaschmidt
ยท
Nov 20, 2020
For reference again, the Nov 20 20p contracts have had no bids on any given day, with offers of about 800 contracts at 0.01. On 10/22, I doubt there were any bids either, and *90,000* traded at 0.03 $TSLA. Not a chance in hell this was a hedge.
Let’s say you wanted to buy an anormous number of deep out of the money puts like that. Of course there is no open interest at that volume. You have to get a market maker or a large trader/institutional firm to sell naked puts, which you buy. They then come into existence and appear.