Examples

Bull Put Spread — Life Cycle

Opening

Screening, selection, pricing, and placement for a short put spread.

graph TD
  A[Start] --> B[Eligibility & risk gates]
  B --> C[Select symbol, expiration, strikes]
  C --> D[Price with clamps]
  D --> E[Place SELL credit spread LIMIT]
  E --> F{Filled?}
  F -- Yes --> G[Persist order & position]
  F -- No --> H[Remain open / retry within constraints]

Management

Rules to reduce risk, extend duration, or take profits.

graph TD
  A[Active spread] --> B{Triggers}
  B -->|Return target| C[Buy back to close]
  B -->|Roll needed| D[Close & reopen later/safer]
  B -->|Risk event| E[Risk controls / reduce exposure]

Closing

Exit on profit targets, time decay, or risk events.

graph TD
  A[Active spread] --> B{End conditions}
  B -->|Profit target met| C[Buy to close]
  B -->|Expiration near| D[Let expire if OTM]
  B -->|Risk exceeded| E[Close promptly]