Absolutely agree, max profit is realized at the expiration. Also, there are reasonable break even points as well.
Goal is to have a trade for 3 months, and try to average 30% return, on a diversified portfolio of course..
Regarding "If the spread costs $2.40 then the maximum profit is $2.60"...
Since you are saving 50% on the loosing leg, your losses are trimmed...
basically your put $1.2 to make $2.60,,, MY BAD, thanks for noticing it..
Goal is to have a trade for 3 months, and try to average 30% return, on a diversified portfolio of course..
Regarding "If the spread costs $2.40 then the maximum profit is $2.60"...
Since you are saving 50% on the loosing leg, your losses are trimmed...
basically your put $1.2 to make $2.60,,, MY BAD, thanks for noticing it..