sell -2 June 11, 2018 2785 puts at $1.20 (29 delta)
buy +2 June 11, 2018 2760 puts at $0.05
- net credit (max profit): $1.15 x 2 x 100 = $230
- margin: $5000
- options expire at 1:00 pm (PT)
Mon. 6/11/2018 (12:06:40 pm, PT)
buy back both short puts (2785 strike) at $0.50
let long puts (2760 strike) expire worthless ($10 "sacrifice" to create spread)
PROFIT: $130
COMMENT:
It's a GOOD thing I bought back my short puts at $0.50 because SPX closed at 2782 and my short puts would have ended up in-the-money!! 😨
LEARN TO SELL PUT OPTIONS HERE!
