It wasn't really a question about options in general, but these specific options. If they are either basically free money for the seller, or suspicious trading by the buyer, why allow both sides to trade like this?
The seller is basically stealing money from a "sucker", until they suddenly aren't. No value in allowing those kind if bets, then. Where the seller either wins or claim fraud. Very one sided.
From my understanding the SEC would end up taking the profits if the prosecution is successful? The seller here is not free rolling by claiming fraud on losses.
The seller is basically stealing money from a "sucker", until they suddenly aren't. No value in allowing those kind if bets, then. Where the seller either wins or claim fraud. Very one sided.