Looking at the Amazon Options on this Yahoo page, there are 121 options interest for June 17, 2022 for the strike price of $5000. Assume that some traders bought the options when the stock price was at $2500 on June 15, 2020.
My questions are:
- Why the traders buy options that far into the future and with a high out of the money strike price?
- Can these traders make any profit for the investment that they have made between from now and June 17, 2022, not waiting until the expiration?
- The stock price of Amazon is $3000 today. Can the traders make any profit because the price has moved from $2500 to $3000, but not above $5000?