Note: I am new to options and not very experienced.
There are generally no free meals in life, and in the stock market, if something is too good to be true, it is. I have researched this question before and found a similar question on this Stack Exchange: Free Money with Options? Many of the answers were really helpful, but all pointed towards one thing:
The ask for the option was more important than the Last Price or Bid.
I am just incredibly confused, because I have found many Put options on Yahoo Finance where the share price was well below the Strike Price, and the ask was absolutely tiny. Even more unbelievable was that these American Style options had an expiration date two or three months away.
Example: AAPL is currently trading at about $110, but according to Yahoo Finance, the ask price for its Jan 2021 $400 put options is $0.20:
Columns from left to right: Contract Name, Last Trade Date, Strike, Last Price, Bid, Ask, Change, % Change, Volume, Open Interest, Implied Volatility
If this is a stupid question, or if I have not been clear enough in the way I asked, please let me know. It just seems highly improbable that these options are legitimate and very profitable.