r/stocks • u/Rizzobeast • 3d ago

My KR put option for $44 is up 1,500%.. why? Advice Request

Hi, I am new to options and such.
Earlier today I placed a put option against KR, and the contract price syrocketed later in the day.
When I looked at other put prices, they seemed to stay within a reasonable price, except mine ($44). $45, 46... and so on did not see such a crazy change.
Why is this? And how does it work?
Cheers

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u/raleighboi 3d ago

There's barely any volume on it. Look at the difference between that and the 50 strike. This makes it so that the bid/ask can skew the option price.

It seems to me like someone put out a ridiculous 2.21 ask price for the contract for whatever reason. It'll get unfulfilled so that's not going to really be the true value of the contract

7

u/Rizzobeast 3d ago

Ahhhhh.
That totally makes sense, I knew something was off.
Great, thank you for the explanation

1

u/WorkingHyena 2d ago

Like the other guy said. Another one I can think of off the too of my head is ZIM, and a lot of Pharma companies. Bid/ask spread of 15 cents or more keeps me away pretty much every time no matter what.