When I try to sell a bull put for a credit spread (ATVI sell 90p/buy88p) for .20 - I get a pop up message (see pic) combo not supported. I have not attempted to execute the order yet- but does this mean I won't be able to make the trade?
My main motivation was to reduce margin as I was thinking originally to just sell the 90p naked exp this week for .55 as a csp. So by doing the bull put I could free up the cash. It's more about being high conviction the deal goes thru and pick up prem on the way.
the only reason to sell the put spread is to capture premium while waiting for the final assessment. if you think the deal will go through, it would be tragic that it gets approved tomorrow and you only made 20 cents.
then the trade is reasonable. i think that if it is announced earlier than 8/29, it will be an approval. but i'm just making stuff up.