Go Back   Trade2Win Forums > Financial Markets > Options
credit spread expiration question credit spread expiration question
Site Guidelines | New Posts | Register Mark Forums Read

credit spread expiration question

This is a discussion on credit spread expiration question within the Options forums, part of the Financial Markets category; I stopped trading far OTM credit spreads on the SPX due to this insane volatility and have begun paper trading ...

Reply
Sponsored By ChoiceTrade Share thread with:  Submit to Digg Submit to Facebook
 
LinkBack Thread Tools
Old Oct 10, 2008, 3:09pm   #1
Newbie
 
Join Date: Aug 2008
Posts: 1
Question credit spread expiration question
I stopped trading far OTM credit spreads on the SPX due to this insane volatility and have begun paper trading legging in and out of spy spreads.

I bought 10 contracts of SPY 61 Put Nov 08 at $0.22 two days ago and it is now around $1.20.

Now I want to sell 10 contracts of SPY 60 Put Nov 08 for $1.30 to create a credit put spread.

Sell SPY 61@ $1.30 = $1,300.00
Buy SPY 60@ $0.22 = $220.00
For a credit of $1080.00 and required margin of $1000.00.

If the SPY settled below 61 on the expiration, how would this settle out in my account?
lemonpiesaregood is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools


Similar Threads
Thread Thread Starter Forum Replies Last Post
Spread betting question for a beginner. roy_a First Steps 13 Apr 30, 2008 1:45pm
help on this question about spread dhsdoor General Trading Chat 4 Feb 5, 2008 11:31pm
A question to successful spread betters SpreadBunny First Steps 61 Nov 23, 2007 1:49pm
Credit default swap -question crazybrab Money Markets 2 Nov 16, 2007 5:38pm
Credit spread v. Asset swap spread crazybrab Money Markets 1 Nov 8, 2007 5:04am


New To Site? Need Help?


All times are GMT -4. The time now is 3:08am.


Copyright © 2001-2009 Trade2Win Ltd