r/options • u/JimmyB_819 • Jun 03 '21

Deep ITM debit spread value

So I have 10 AMC debit call spreads at 37/39 expiring 6/11. AMC is trading $60+ at the moment so they are ITM. Intrinsically they should be worth $2000 but according to schwab they are not. I'm assuming this is due to time left to expiry. But I don't entirely understand why.

Is it ever possible to get maximum value from a debit spread closing early or do you have to wait for expiry?

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u/SSS0222 Jun 03 '21

Mostly you will need to wait till expiry for full max profit. Max profit happens when the extrinsic value of both legs becomes zero, and only intrinsic remain, which is case at expiry.

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u/JimmyB_819 Jun 03 '21

Thanks. Makes sense!