lemonpiesaregood
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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?
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?
