I ran a put credit spread on KTOS with a credit of ¢.16. As the price got closer to the strike, it ballooned up to a ¢.64. Instead of RH saying you’ve lost a whole bunch of money, I’m being shown I’m up $400. I’ve been trading vertical spreads for about 2 years and have never seen this.
My guess is that the short leg is in the gutter and the long leg value is increasing. Combined a showing a huge gain.
Now I 100% expect it to flip back to normal at some point tomorrow, but if it expired like this, would I still just be receiving the credit or the higher value?