Why are stock options so illiquid?

General
1

I see many stock options for next month which don’t have any liquidity and in the current month there is not much time left if someone wants to buy stock options for more than a month they don’t have any option… Plus if they buy current month thinking they can rollover next month if the contract becomes ITM there will be huge margin requirement. Which is another blocker for retail traders who want to buy options for more than a month. what a waste…

Why market makers not interested in next month contracts?

2

Stock options are illiquid because there is a delivery obligation attached to these contracts. Therefore, it is a dangerous proposition to trade in stock options without holding the underlying asset or without having the cash to buy the underlying asset. As you can understand, not many people have the capacity to deploy that much in resources.