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]