[quickthrowman]

An option contract with an ask of $0.04 costs $4. The trader bought 5500 options for $4 and they’re now worth $1830, so it’s still a $10M profit.

The listed option price is the price per share, and a standard option contract is 100 shares of exposure.

[mrb]

No, the trader bought 260 options. See second photo in the tweet, first row, column "volume". 260 options times $4 equals $1,040 invested, which turned into $475k.