Hi, nice video, thank you for sharing. I just didn't understand about the part about how you made $ 2,087.5 on closing short put of debit spread. When you close it, you buy short put, right? For you to have a profit of $ 2,087.5 (the original amount when you sold this put) you would need to buy it for $0 - meaning it fully lost it's value (so delta became basically 0), but then in this case the long put would also basically lost all value (and 2 short puts as well) - so your net profit would basically become ($ 2,087.5 + $ 1,352.0) - $ 2,268.5 = $ 1,171 (instead of $ 600, as you wrote on that page). So I guess you closed short 1 short put (from debit spread) when it lost value (from $ 2,087.5) to around $ 571 (so your profit from selling put for $ 2,087.5 and buying it back later at $ 571), resulted in profit of $ 1,516.5 (not $ 2,087.5) and remainig 1 long + 2 short, if carried out till expriration would render you net $ 600 (in exchange of having $ 24,000 hedge for the next 45 days till expiration). Right?
nice work
Thanks!
Hi, nice video, thank you for sharing. I just didn't understand about the part about how you made $ 2,087.5 on closing short put of debit spread. When you close it, you buy short put, right? For you to have a profit of $ 2,087.5 (the original amount when you sold this put) you would need to buy it for $0 - meaning it fully lost it's value (so delta became basically 0), but then in this case the long put would also basically lost all value (and 2 short puts as well) - so your net profit would basically become ($ 2,087.5 + $ 1,352.0) - $ 2,268.5 = $ 1,171 (instead of $ 600, as you wrote on that page). So I guess you closed short 1 short put (from debit spread) when it lost value (from $ 2,087.5) to around $ 571 (so your profit from selling put for $ 2,087.5 and buying it back later at $ 571), resulted in profit of $ 1,516.5 (not $ 2,087.5) and remainig 1 long + 2 short, if carried out till expriration would render you net $ 600 (in exchange of having $ 24,000 hedge for the next 45 days till expiration). Right?