Replies to post #115105 on Option Millionaires

[boca_bobby]

The difference between the two strikes in the total risk. In your case it's $5.00

$600 weekly puts - $595 weekly puts = $5.00

Since each contract is for 100 shares we multiply these two figures:

100 shares X $5.00 = $500

$500 is the total risk per contract spread


Hope this helps

[farooq]

AAPl 595P Weekly 1.35 1.40
AAPl 600P Weekly 2.75 2.80

There is no credit in situation you wrote it is 1.45 debit if stock close below 595 you will get 5 $ if above 600 you lose 1.45.
In your case it is debit spread.

You sell 600 and buy 595 on July 21 then there is 2 $ credit.
Hope it help.

[leemalone2k3]

Sorry , I had to take off the rest of the day. It looks like your question was answered. However, the 595wp had a high of 3.45 today. Did you mean the 605wp in your question?