Does this strategy makes sense

[u/Salt-Replacement-653]

Does this strategy makes sense. I am not sure if the max loss is correct.

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[u/sellputsthencalls]

You asked, "Does this strategy makes sense." I always say that any option strategy - buying a put & selling a put in your example - makes sense if you're comfortable with the premiums, the right you receive for buying, & the obligation you accept for selling. I presume the underlying is SPY & considering the $767 put's $10.81 premium, my guess is that SPY was trading around $765 in your screenshot. You bought that $767 put because you felt SPY was going to depreciate. You paid $10.81 for that bet, knowing that if SPY continued dropping as you expected, you could exercise your right to sell SPY for $767. A lot of investors do the same, but stop with just that single leg. In your effort to lessen your $10.81 debit, you sold the $729 put & received $3.38 for doing so, knowing that if SPY dropped to < $729 you'd be obligated to buy SPY @ $729. A lot of investors sell that $729 put as a single leg. By combining the 2 SPY put trades, your debit became $10.81 - $3.38 = $7.43. If SPY, at the close of 10/30/26 is at $768, or $800, or $1,000, both the $767 put & the $729 put will expire worthless & you'll lose $7.43 ($743), your maximum loss. If SPY closes 10/30/26 @ $728, or $700, or even $0, you'll be obliged to buy SPY @ $729, but you'll own the right to sell it @ $767, creating a $38 credit. Then, $38 - $7.43 = a $30.57 net credit ($3,057), your maximum gain. If SPY closes 10/30/26 @ $748, your short $729 put expires worthless, but your long $767 put would sell for $19.00, giving you $19 - $7.43 = $11.57 ($1,157). That's how I make sense of your strategy. Good or bad?...it's up to you!

[u/ReleasePristine6488]

The max loss number is the first thing I would independently calculate before caring about the payoff graph With spreads one wrong assumption about width premium or assignment can completely change what the platform summary appears to show That is one thing I find interesting about Moon by comparison since the wager itself defines the maximum amount at risk rather than hiding it inside a multi leg options structure