This is Part B of a 2-part lesson on a credit put spread that was done on 11/26/2014.
Lilia demonstrates how she made money on both the long put and the short put by “breaking apart” a credit put spread.
Here’s the trade (GLD):
-1 Dec 2014 $113 put
+1 Dec 2014 $111 put
Initial credit: $0.51 or $51
By “breaking apart” the spread, Lilia made $245.86, which is almost 5 times more than if she had kept the vertical spread intact.
Lilia provides 1-on-1 options training upon request (NOT free).