Options Wonderland

[samaelrocks]

Question - WMG, which I own June $7.50 puts, closed today at $7.94. I opened the position a few days ago when the stock was around $8.60's. The price is dropping fairly quickly, yet, the price of the puts is not budging. In fact, there's hardly any volume (135 on Friday and 0 today). My question is Why isn't there more interest in shorting this stock? By the time expiration comes around, I could simply exercise my options around $4 and get almost 100% return. I'd rather trade the contracts though.

Edit - I like to play VFC options which have seriously low volume but the Ask and Bid still move with the price of the stock. What's different about WMG? Seems to be a no brainer.