Is This Analyis Correct for My Credit Spread:

I looked at adding a call spread, but you don't get much premium with the calls. Most of the premium seems to be in the puts because of the upcoming ex-div date.
 
i would have kicked out an upside call spread ..

15/16 call spread at .60 or the 14.5/15.5 at 1..

You would still be in for a credit,but with some luck,you could make 2.25 or 2.65..
 
If I sold the 15/16 call spread, the max I could earn would be the credit for $60 and the max loss would be the spread of one point, less the credit, which works out to $40. Therefore the reward to risk is pretty good, at 1.5 to 1. However, probability of profit is low, because the 15 strike put is already in the money (PBR closed today at $15.54).

There is also a chance that someone could exercise the call the day before expiration to capture the dividend, leaving my short 100 shares, and responsible for paying the dividend to someone. Do you think the possible reward of $60 is worth the risks being undertake for the call spread?
 
One more day to expiration. So far it's closed OTM for your short put. Let's see what tomorrow will bring. Make sure you have enough money to buy the stock if you get assigned. Hope you don't get assigned.
 
Where does TOS show the dividend information? I have never seen it on there. You're right, the stock opened about $2.60 lower. I got the information for the dividend from this
press release at the company website:

Amount to be paid: R$ 6.732003 per common and preferred share outstanding, whereby:
(i) the first installment, in the amount of R$ 3.366002 per outstanding preferred and common share, will be paid on August 31, 2022.
(ii) the second installment, in the amount of R$ 3.366001 per outstanding preferred and commonshare, will be paid on September 20, 2022.

Record date: August 11, 2022 for holders of Petrobras shares traded on B3 and August 15, 2022 for ADRholders traded on New York Stock Exchange (NYSE). Petrobras shares will be traded ex-dividends on B3 and NYSE as of August 12, 2022.​

I read that as a total dividend 6.73 BRL, which is about $1.32 at today's exchanged rate. I closed out the spread today rather than accept assignment. The profit was only $44 per contract.
 
Roark said:
Where does TOS show the dividend information? I have never seen it on there. You're right, the stock opened about $2.60 lower. I got the information for the dividend from this
press release at the company website:

Amount to be paid: R$ 6.732003 per common and preferred share outstanding, whereby:
(i) the first installment, in the amount of R$ 3.366002 per outstanding preferred and common share, will be paid on August 31, 2022.
(ii) the second installment, in the amount of R$ 3.366001 per outstanding preferred and commonshare, will be paid on September 20, 2022.

Record date: August 11, 2022 for holders of Petrobras shares traded on B3 and August 15, 2022 for ADRholders traded on New York Stock Exchange (NYSE). Petrobras shares will be traded ex-dividends on B3 and NYSE as of August 12, 2022.​

I read that as a total dividend 6.73 BRL, which is about $1.32 at today's exchanged rate. I closed out the spread today rather than accept assignment. The profit was only $44 per contract.
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You are lucky that the gamma didn't kick in as much that you were still able to close the ITM short put to land you a bit of profit.
 
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