Bull Put Spreads - Controlled Risk/Return

Yow! That's a pretty slick program.....I'm mucking around with the demo now.

 

I wonder if in the bull put spread, your sold leg (sell put option) become ITM and your bot leg (buy put option) is OTM.

Will your option be exercised before expiration day?
Wont it loss even more?

Honestly, I am in this position and still need advise what to do

 

If a put option trades at parity or very close to it then you do have a risk of early exercise.

Mathematically, if the cost of carry is more than the price of corresponding call then an ITM put will be exercised early.

You can find some basic examples here.

 

Thanks a lot, MTE
I will learn from the site first
will come back after learning