I have a put spread question

Discussion in 'Options' started by digitaljedi1, Feb 17, 2011.

  1. Can someone tell me why a person would buy say an April 11 GOOG 375/380 put spread , wont they just excersise it soon as its filled?
  2. tomk96


    why would somebody exercise a put that is 250 points out of the money? google closed 630 ish.
  3. It might be tough since at that level, GOOG options have 10 pt strikes :)
  4. I'm sorry i meant AAPL 375/380 put spread for April 11
  5. tomk96


    i would guess those calls have value. if you exercise a put, it's like selling the call for zero. you only gain short carry, which is essentially nothing with rates here. you may even pay for short carry.