Why would the market have options with no bids? Is it a trap?

The presence of options with no bids can be attributed to several factors:

1. Lack of Demand: If there is no demand for a particular option, it is unlikely to have any bids. This could be due to the option being deeply out of the money, which reduces its attractiveness to buyers, or because of a general lack of interest in the underlying stock or market sector.
2. Illiquidity: In some cases, options with no bids may be the result of low liquidity. If there are few buyers and sellers actively participating in the market, it becomes challenging to find a bid price for a particular option. This is particularly true for less liquid options.
3. Market Manipulation: It is also possible, albeit less likely, that the absence of bids could be a deliberate strategy by market participants to manipulate the market or to create a false perception of demand. However, this is more common in other forms of trading, such as the stock market, where large institutional investors may manipulate the market to their advantage.
4. Strategic Trading: In some cases, a market maker might intentionally not provide a bid price for an option to create an opportunity for a large trader to step in and provide a bid at a desired price. This can be seen as a trap, but it is more likely a strategic trading tactic.

In conclusion, the absence of bids on an option can be a result of various factors, including lack of demand, illiquidity, or strategic trading. It is not always a trap, but it could be a sign of market dynamics that you should be aware of when trading options.