Cash settled at expiration, was expecting the underlying stock

[TheDawn]

@TheDawn, I'm disappointed of your hollow answers to my concrete questions.
I'm giving you a last chance to answer my questions.

Here are the relevant facts regarding risks from the said Robinhood link:
"
PUT CREDIT SPREAD (other names: short put spread or short put vertical)

SETUP: Short put + long lower strike Put in the same expiration

THEORETICAL MAX LOSS: Difference between the strikes minus the credit received (50 - 45 = $5 - $3 credit received = $2 max loss)

WHAT CAN GO WRONG? A quick, and/or big move to the downside. Worst case is the stock drops below the strike prices of both options.
A rise in implied volatility could inflate the option premiums while the trade is on. The short option can suffer from the rising price. However, since there is a long option (benefitting somewhat from inflating value), the impact overall is less than if it were just a short put position.
"

So, where is the danger you are talking of, ie the risk you mean?
I'm using this spread b/c I want to cap the loss --> ie. for reducing the very risk of just the ShortPut alone.
So, your statement is illogical to see more risk in a spread than in the short leg of the spread alone.

Read my post again. I never said there is MORE risk involved with vertical spreads vs. short options alone just that there are risks as well with vertical spreads. It's not as riskless as you think. You can still lose from vertical spreads.

Jesus you need to learn to read as well.

 

[earth_imperator]

Read my post again. I never said there is MORE risk involved with vertical spreads vs. short options alone just that there are risks as well with vertical spreads. It's not as riskless as you think. You can still lose from vertical spreads.
Jesus you need to learn to read as well.

You said the following, and it shows you are clueless:

And one more free piece of advice to you: Don't be fooled by the easy "income earning" capability of shorting vertical spread. They are riskier than you think. You may like the small but seemingly steady income that you are earning but when it goes wrong, the loss can take out everything that you have earned and then some. Consider yourself warned.

 

[TheDawn]

You said the following, and it shows you are clueless:

Yeah vertical spreads are riskier than you think. I never said they are riskier than shorting options alone!! WHERE did you see me say that?? You fucking can't read, that's not my problem. You lost the argument; you know it and everybody knows. I don't know why you still have to come up with these pathetic posts to show just further how pathetic you are.

And you obviously know shit about options and even less about trading. Everybody can see that too. I have been trying to help you which you obviously haven't noticed or appreciated so I am done.

Good luck!! You are going to need it, big time!!

 

[earth_imperator]

@TheDawn said:

Don't be fooled by the easy "income earning" capability of shorting vertical spread. They are riskier than you think. You may like the small but seemingly steady income that you are earning but when it goes wrong, the loss can take out everything that you have earned and then some.

Your above statement is BS, because if a trade goes against you then it's not the fault of the used options spread, nor of any of the legs of the spread, not even in the general sense of any of the used options strategy. The fault rather lies in front of the monitor : wrong timing, wrong underlying, wrong strikes etc. etc.

And also prove this statement of yours (from above):

but when it goes wrong, the loss can take out everything that you have earned and then some.

Consider this as one more free piece of advice to you :
You should be exact when you make such important statements, b/c you could be asked to prove what you said... and if you can't, then this proves you a liar... Q.E.D.

 

[taowave]

Ild worry more about levering up,but he appears to be prudent as far as risk..

And one more free piece of advice to you: Don't be fooled by the easy "income earning" capability of shorting vertical spread. They are riskier than you think. You may like the small but seemingly steady income that you are earning but when it goes wrong, the loss can take out everything that you have earned and then some. Consider yourself warned.

 

[taowave]

Earth,You may not like his delivery,but Dawn is pretty much spot on in his assessment...

There's obviously no free lunch...

Nothing wrong with mastering verticals,as they are building blocks for other strategies as well
..

 

[TheDawn]

Ild worry more about levering up,but he appears to be prudent as far as risk..

With the way how he touts vertical spreads as the holy grail and doesn't even bother to learn to read PnL diagrams to learn about its potential risks, he doesn't really need leverage to have something happen to his account. LOL I was trying to do him a favour by pointing shit out for him but now I am through helping him. Can't help someone when the idiot can't even read and has an ego bigger than the Milky Way. Some people can only learn after getting whopped in the a$$. Anyway don't really care.

 

[earth_imperator]

@TheDawn, don't spread lies about me! I know how to read & interpret a PnL diagram very well.
It's you who doesn't know how to read it, b/c otherwise you would not make your false claims about vertical spreads.
Just prove your made claims to prove that you are rigth. I'm 100% sure you can't. Ergo, a liar you are!..

 

[earth_imperator]

Earth,You may not like his delivery,but Dawn is pretty much spot on in his assessment...

There's obviously no free lunch...

Nothing wrong with mastering verticals,as they are building blocks for other strategies as well
..

In such an important technical/mathematical discussion, one expects accurate information & statements, not sloppy BS.
He failed in this respect, and this upsets me with such people. They are not serious, they just disturb any serious discussion with their insistence on their wrong thinkings. And when asked, they won't nor can't prove their claim, instead go to insulting & badmouthing mode...
I'm investing precious time in such discussions, to learn as well to inform others. I'm not interested to discuss with such idiots who can't follow basic etiquette.

 

[taowave]

Ok then,
But keep in mind your first post was pretty confusing and perhaps indicative of where you are on your journey..

What criteria do you use to select spreads??

In such an important technical/mathematical discussion, one expects accurate information & statements, not sloppy BS.
He failed in this respect, and this upsets me with such people. They are not serious, they just disturb any serious discussion with their insistence on their wrong thinkings. And when asked, they won't nor can't prove their claim, instead go to insulting & badmouthing mode...
I'm investing precious time in such discussions, to learn as well to inform others. I'm not interested to discuss with such idiots who can't follow basic etiquette.