This r/options comment avouches that on Sept 24 2020
Someone bought 40,000 [T]esla puts. The strike price is 40 dollars so the puts will only pay out if Tesla is below \$40. The expiration date is October 2nd so that is the last day they can have that happen. The price they paid was $0.03/contract.
Putting that all together, someone paid \$120k on a bet that Tesla will drop over 90% in the next week.
Why would someone do this? It is kind of hard to say as that doesn't seem like the best strike or expirat[i]on date they could have gotten. Odds are though that it is a fund who is actually bullish on [T]esla (think it will go up). They likely bought calls and the team that calculates their risk management said the risk of the stock going to 0 was too great to make the play they wanted to make. So to hedge that risk they purchased these cheap puts (0.03 or $3/contract) to allow them to make the actual upside play they want to make.
I don't know if the put buyer had calls, and the expiry of those calls. But let's purport that the put hold had calls that expired in Sep 2022. Assume that all puts mentioned below can be bought.
Then what are the advantages and disadvantages of buying puts that expire in Sep 2022 vs. repeatedly buying any put that expires before Sep 2022 (e.g. 7DTE weekly, 30DTE monthly, 365DTE yearly)?