SPX ditm spreads turn IC like... thoughts

Discussion in 'Options' started by luckyfnlou, Jun 14, 2020.

  1. Just curious if anyone ever legs in or creates an IC like trade using debit spread instead of credit spreads?

    I found myself thinking about this after legging into a 75 delta ditm debit put spread and later decided to put on a similar spread on the other side to neutralize delta. I ended up riding this into expiry and when one side was challenged it was nice being long the outside leg.

    This made me look at the whole trade as if I put it on all at once and compare it to a standard IC. When you look at it this way you can see it requires 3x more buying power for similar performance. Not sure that would be worth it as a planned strategy. I'm curious what others think of this. Does anyone start ditm debit spreads to create this as a goal? Thanks!