u/Sufficient-Flan1565 ·
Reddit — r/options
· June 23, 2026 at 00:13
· ⬆ 15 pts
· 💬 39 comments
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Hey Folks,
I am looking at this trade in my account. It looks like a box spread. I am confused why it's giving a mid credit of 51.88 USD when maximum loss is limited to 5000 USD. So you make 188 USD risk-free?! What am I missing?
It's basically a call bear spread and a bull put spread with both spread same expiry and same strikes. In this case because both spreads are 50 points apart, you never can lose more than 5000 USD no matter where SPY lands on Dec 18, 2026.

Edit: Schwab told me today that they would treat these two credit spreads separately and would hold 10k as collateral. That defies the entire purpose of this box spread. Seems wrong why would they hold 10k when it’s impossible to lose more than 5k on this box spread.