Zeev's Turnips Patch-No Politics (ZEEV)

[alohamart]

Edit: Not sure about the nomenclature, but it may be called a ratio spread or something like that (bearish credit ratio spread?) because the number of puts bought is more than the number sold. It's been awhile since I've studied the terms of these spreads...

No, if they bought more than 8000 more contracts of the 45 puts than they sold of the 55 puts, it's a bear spread, profiting from a decline in the QQQ, as they'd be net long QQQ puts. They do get a credit, but that's gravy upon which they earn interest. Max gain is if QQQ goes to zero, as those >8000 QQQ put contracts will be up big (as well as the rest of the long/short postition, which nets each other out). Max loss is if QQQ closes at 45 at expiration if they hold it all, as all those 45 contracts would expire worthless while they would owe $10 for the 55 puts they're short.