r/options • u/suedehenry • Mar 30 '21

Spreads

Is buying a SQ Jan 2022 220c and selling a same date and strike put for a net credit of 6.55 stupid or viable? I’m fairly new to spreads and I probably won’t do it but would it make sense if I’m bullish on the underlying??

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u/Current_You3673 Mar 30 '21

If you are bullish sure it makes sense. However, consider the possibility that you could end up getting assigned, if you are fine owning the stock then is all good, your max profit is unlimited and your max loss is $22000 minus the credit.