Hello Doc.........This is a simple question and seeing as you are an "options" guy, maybe you (or anybody else) can answer it. I sell covered calls which is how I make my living but why are the calls priced at $1.00 intervals (IE. 10.00 11.00 12.00 etc) such as AGNC but on other stocks, the increment is $2.50 (I.E. 10.00 12.50 15.00). It kinda makes it hard to do anything with when your cost is in the middle of the strike prices. Case in point: INVN.
Thanks for your good posts as they are ALWAYS a great read and help alot.
The stocks with options which trade on thinner volume use wider spread strikes. As interest increases, the options gain in closer spacing of the strikes and more availability in back months(leaps). It wasn't until Mar 2011, if memory serves me , that AGNC got our first Leaps in the 13Jan, which we are in right now. I thought at that time, wow, 2013, that was way out there, and here we are...;-)
The MM's don't want to waste their time fooling with a bunch of strikes if no one is interested, is the basic answer to your question.
Upon a closer reading of your post, I wonder why you don't just sell the Leaps? Example sell the 14Jan12.50Call for 2.50. You get a 3.00 profit if the PPS is at 12.50 or above by 14JanOPEX(25% profit on today's cost of 11.99/share).
You are protected down to 9.50 by 14JanOPEX, which is BE. Hard not to like it!