How Do Market Makers Determine Which Strike Prices to Offer?

Market makers are financial institutions that provide liquidity to the options market. They do this by quoting both a bid price and an ask price for a particular option.

The strike prices that they offer are determined by a number of factors, including the price of the underlying asset, the implied volatility of the market, and the demand from traders. They will typically offer a range of strike prices that are both in-the-money and out-of-the-money.