I bought GOOG Dec 460 and 480 bull spread for 15.5 debit. Even I'm getting the direction right, the overall position still shows very little profit, well off from the max that is anticipated at expiration in 2 weeks. Is this normal with spread? Thanks!
As long as GOOG closes above 480 you will get your maximum profit of $4.50. With GOOG at $489 you are safe for now.
There might be some volatility-skewing that's not going your way. The 460-call doesn't have as much "vega" as the 480-call.
While true, I think you mean "implied volatility" instead of vega. vega is the sensitivity to volatility changes, which is only marginally related to volatility-skewing.
It's all Greek to me! There might be more buying interest in the 480-call which might be pumping up it's implied volatility at a greater rate than the 460-call.