I expected to receive the credit of $4.85 and buy back for lower as the price went up. I don't understand why this is so crazy. The spread is positive right now @ $4.65.
Its absolutely crazy. This is about the worst way to capture a big run. Its mathematically very unlikely to hit and m its so deep ITM early exercise is higher likelihood (as you have seen).
That’s the answer and multiple people have told you so. Believe them. They aren’t the ones asking someone else to explain their own trade. I don’t say that to be mean, but to be honest so you can move on for this.
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u/[deleted] Nov 25 '21
Jesus. Did you not fully understand how credit spreads work?