Yes The options are OTM. Don't need any upside - just trade above $470.00. You are ALWAYS one bad headline away from getting burned on ANY credit spread, but you know the maximum loss when you enter the trade.
I'm just speculating, but perhaps you're not familiar with the much less ulcer inducing risk/reward characteristics of a closer to the money vertical compared to those further out? Getting burned big time is not a necessary eventuality even with an adverse move in the underlying, especially with a sensible position size. MoMoney.
Well, It's been a known fact that I'm not the smartest guy around here....:eek: But I think GOOG being $9 away from 470, the first available strike, is too close for me to be short a 470 put. Not with 14 trading days to go. GOOG moves more than $9 when the wind changes direction.
My 2 cents: Trading options is risky. Trading is risky. Not trading is also risky. And not knowing what one is doing is probably the most risky of all (based on personal experience ). daddy's boy
"As we know, There are known knowns. There are things we know we know. We also know There are known unknowns. That is to say We know there are some things We do not know. But there are also unknown unknowns, The ones we don't know We don't know." Donald Rumsfeld, Feb. 12, 2002, Department of Defense news briefing. Also the main theme of the entertaining Traders, Guns & Money