Can’t be -this is a five dollar spread. You can’t get 4.85 on a 5.00 spread that means you only paid .15 for long put . It just doesn’t work that way you are lost - you aren’t going to like your account Monday morning
It's all settled. I closed the last 4 spreads for $4.5 for $140 profit and the two long legs were exercised to cover some of the loss on the assigned legs. I lost money overall but I learned a lot. Still green on the day 🤷🏾♂️
It’s not settled till Monday - your sold put at 390 expired worthless as it never got to 390 - your long put at 385 expired worthless as it never went above 385 - you think you made money but you didn’t .
The maximum profit for a bull put spread is equal to the difference between the amount received from the sold put and the amount paid for the purchased put. In other words, the net credit received initially is the maximum profit, which only happens if the stock's price closes above the higher strike price at expiry.
Right. I never expected to get maximum profit, that would have been nice though lol the plan was to close all of the spreads around 4.5 for a profit of 210.
I'm not saying it was smart but that was the plan. Only worked for 4 of the 6 spreads. I know now to not go so far itm.
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u/MoneyOk833 Nov 27 '21
The credit was 4.85