| Put spread writes involve selling an out-of-the-money put and buying a further out-of-the-money put. These are credit spreads. The income is the net credit, which is the premium received minus the premium paid. The margin is the difference between the strike prices less the income. The spread yield is the income divided by the margin. This table is grouped by Month and within each month sorted by out-of-the-money Distance as a percentage of the stock price, from highest to lowest. With spread writes the hope is both options will expire worthless so you will pocket the net credit. If the stock goes down below the strike price of the option you sold, you could be assigned on that put resulting in a partial profit or loss. If it goes down further below the strike price of the put you bought, your loss will be limited to the margin amount. |
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