my options spread should be in the profit but isnt. please explain why


New Member
hi. i entered a $440-450 bull call spread when the stock was in the 430s and now it is at 443 but im in the negative. i should be in the profit right? the 440 calls i longed are up 2.4/share but the 450 calls i shorted are up 2.5/share so im down $10/contract. i don't get it. can someone explain this to me? thank you.


Active Member
Hi ftr,

Option pricing inconsistencies do occur due to liquidity or rather lack of it. It appears that the 450 option is more liquid.


New Member
hi vince and thanks. i checked the volume and open interest and yes the $450 calls are higher on both accounts. but the delta on the $440 call is .596 and on the $450 call is .57 so the $440 call should move more per dollar change in the stock's price right? but the $450 call moved more and i don't get it.

if i want to exercise the long call can i exercise it and sell the underlying stock at market price all in one transaction? my point is i don't want to exercise a $440 call and then have to sell the stock at market price in a separate transaction only to find that in the time it took to fill the order to sell the stock, the price dropped below $440, you know what i mean?

thanks again for your message.


Active Member

I can understand why you dont want to exercise. In that case your best bet is to let the spread expire. (in the assumption it remains itm)

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