If I understood the question correctly, then the answer is that I will close the SOLD PUT leg when it reaches something like a nickel....esp if there are weeks to go until expiration.
AND: I watch price action carefully as I try to sell the NEARER priced put at a price level that is at least below TWO SUPPORT LEVELS, thus an attempt to never get assigned.
I will close the SOLD put should the strike touch a dime or so below that strike price to prevent being assigned.
In both cases, where a nickel or less is achieved, or the strike gets hit, then I will leave the BOUGHT put open and it will expire worthless.
If the price action has me well above the sold put strike price, then I will leave the entire spread expire worthless. I sold an APOL 50/45 two months ago and it expired recently completely worthless for a full credit to my account.
I hope that this helps and that it was clear.
AND: I watch price action carefully as I try to sell the NEARER priced put at a price level that is at least below TWO SUPPORT LEVELS, thus an attempt to never get assigned.
I will close the SOLD put should the strike touch a dime or so below that strike price to prevent being assigned.
In both cases, where a nickel or less is achieved, or the strike gets hit, then I will leave the BOUGHT put open and it will expire worthless.
If the price action has me well above the sold put strike price, then I will leave the entire spread expire worthless. I sold an APOL 50/45 two months ago and it expired recently completely worthless for a full credit to my account.
I hope that this helps and that it was clear.
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