Rebates offer retailers the benefit of giving customers a temporary discount on an item, to stimulate sales, while allowing it to maintain its current price point.
Utilizing this contract structure, the current price of a contract can be imputed as the market's global opinion of the probability that the specified event will occur.
The closest a guaranteed stop loss order can be placed is typically 5% from the current price, and providers usually have specific terms and conditions on the orders.
Finally, one might often find the need to be regularly rolling this entire strip of options so that it remains centered around the current price of the underlying security.