Illiquid Options Scam
Scammer needs both illiquid stock and large spread. The scammer would put the best offer price (not the highest), lets say Rs. 42 in INDHOTEL JAN 270 CE option in your example, and from client account, buy that at 42 since there are no other buyer at such high price. Now, scammer would put the best bid price in client's account, lets say 35 and buy back from his account since there are no other seller to sell at such low price. This guarantees the both sell and buy side of transaction for scammer. So scammer sold at 42 and bought back at 35, a profit of Rs. 7 per share and for the lot size of 2000 for INDHOTEL, Rs. 14000 per lot.