Spread strike price placement

I've got a question about where the most optimal strike placement is when doing a spread. Most of what I read recommends doing a 2 or 5 point wide spread on say, a $50 stock. Won't you make more if you do, say, 2 1-point spreads vs 1 2-point spreads. Example on SPY:

You could do a Jun30 192/191 credit spread and make $.17
Or you could do a June30 192/190 creadit spread and make $.31

Is there any reason I wouldn't do 2 of the 192/191 and make $.34 vs 1 of the 192/190 for the same margin requrement?

Thanks

 

your risk/reward is greater for the wider spread strikes

 

How is the risk any greater with 2 1-point spreads versuses 1 2-point spreads?

 

1) The break-even points are different for each spread.
2) If the market declines to the "short" strike-price, implied volatility should go up and you might be in limbo as to maintaining the position or getting out of it. :eek:
3) Generally, you'll need to hold the trade until expiration in order to earn the entire "small" credit out of the trade.
4) Bid-ask spreads might be wider than you realize.

 

for 2pt spread you risk 1.69 for .31
for 1pt spread you risk .83 for .17

 

1) Right, but taken as a whole the 192/191 would offer a more advantageous break even point
2)Yes, but I would think that if anything, having a higher(191) long strike would be more advantageous in this scenario
3)True with either
4) True. But you should get a better spread with the closer-to-the-money(191) strike vs the 190

 

What happens if SPY is at 191.50 at expiry? In which case are you going to lose more money (rhetorical question)?

 

Can you explain that? If it was at 191.50 at expiry, I wouldn't think there would be a difference. Both the 191 and the 190 puts would expire worthless, and I would have to buy the 192 strike back for $.50 either way.