Thanks Does put credit spread always goes to zero on expiry if my upper price is below current stock price byu/Independent-War-6725 inoptions Posted by Independent-War-6725
PapaCharlie9 on June 5, 2024 3:02 pm No? A put credit spread goes to zero if BOTH strikes are below the expiration stock price. Like a 100/105p and the stock price is 106. More generally, if both strikes expire OTM for any credit vertical.
smartoptionseller on June 5, 2024 3:15 pm Yes, on a put credit spread, if both strikes are below the current stock price, then all expire worthless.
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No? A put credit spread goes to zero if BOTH strikes are below the expiration stock price. Like a 100/105p and the stock price is 106.
More generally, if both strikes expire OTM for any credit vertical.
Yes, on a put credit spread, if both strikes are below the current stock price, then all expire worthless.