/biz/ - Business & Finance

>>52878530
Here's a different example. This is a bull put spread. You want SPY to be above $380 at expiration. Your max gain is $10, and max loss is $90. That means when running this trade over and over, you have to win more than 90% of the time to win. The delta (not shown in pic) at $380 is 11. Which means you have an 89% of success of winning the trade. So you need more 90% to break even, but only get 89%. You'll lose more than you win.