The Trade filled easily enough, you need to look at the Market depth and put your order on at a fair price as the market spread can be wide, so You can put your order inside the spread.
Mainly Traders would Buy a Put so they can then buy stock on margin loan etc.
The 10c they pay exposes them to just a 70c fall in price.
So effectively they are paying 80c for a 70c stock that has the daily Volatility of FMG.
If they Buy on Margin at say $4.70 and buy a 10c put at $4-00 etc.
They can then ride that 70c market exposure to $5.20 and take a profit .
They could then sell their Put back to the Market and get mabe 3 or 4 cents while FMG is at $5.20.
Plus alot of the Options market makers could also be hedging with Warrants.
Or even issuing Warrants.
The Market maker that filled my order may be able to profit in some other way after filling my order.
Or else they may be happy to balance their exposoure by taking the trade.
Also market makers do have an obligation to fill orders close to the Calculated Options Delta theta etc etc.
Im not a Savant so most of the above is gut guess, But I did this trade for real for 200 contacts and got about $1960 credit after brokerage. Ive got the 80k in another account if I had to buy FMG and at $4- I think is a safe entry price.
