with the latest roller coaster charts for spy, we see a lot of options which are one DTE worth four, five $600 per contract, and by the second half of the zero DT day, we buy them back for $20 to $40 each, so we can make new covered options before the end of the day. it keeps happening over and over and over and no one, seems to cash in prior to expiration.
what do you think explains it? people buy options as a sort of unguided missile, buy it and forget it until it lands? it is weird where people feel perfectly comfortable scalping a few hundred dollars off SPY shares, appear willing to watch thousands literally evaporate rather than cash in early.