r/thetagang • u/Boarder_Travel • 1d ago

Question Vertical Put Oddities

I was opening a QQQ spread on Friday and saw something odd.

I bought the 4/7 424P and sold the 417P.

When looking at the trade calculator on Schwab it showed of profit at close even if the price rose.

I didnt take a screenshot because the price was moving all over the place.

Has anyone seen this before?

Thanks!

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u/Boarder_Travel 1d ago

This is what it looks like right now

https://imgur.com/a/dfVX3Vx

1

u/MostlyH2O Level 300 Karen 1d ago

It's probably just not calculating your cost basis correctly. Max loss is the debit to open the spread.

1

u/Riptide34 1d ago

Sometimes these P/L calculators don't get things quite right. Like mentioned already, your max loss on the spread is the debit you paid for it, and max profit is the width of the spread minus the debit you paid.

Of course, that max loss of debit paid is assuming you don't take it through expiration and get yourself into a pin risk type scenario.