I'm starting to learn the ins-and-outs of options. For the time being, I'm only interested in selling call options of index funds. Browsing through the available options in Robinhood for the ETF IVV (An S&P 500 index Fund), I noticed this option at the top:
As shown in the image, if I sell this call option, I make a profit if the price of IVV stays under $312.45 for the next 2 days (the option expires on March 29th).
The price of IVV as of today, March 27th, is set at $281.06, for it to reach the $312.45 price, it would have to go up by 10.93%. It is virtually impossible for this to ever happen.
So, my question is: why would anyone ever buy this option on the other side? I must be missing something. What am I not understanding correctly here?