Was looking at a META Jun 5 $480/$475 put credit spread at $0.19 credit ($19 total). Never placed it, just exploring. Buying power reduction would be $481.
Max profit $19, max loss $481 — 25:1 risk against me.
Main goal is passive income on a margin account — something low stress, doesn’t need constant babysitting, and won’t blow up if I’m not watching every minute.
Trying to understand if this even makes sense:
• Is this ratio normal for credit spreads or are these just bad strikes?
• What % of spread width should you collect before it’s worth putting on?
• For passive income on margin — is this even the right strategy or am I looking at the wrong thing entirely?
• Is defined risk (spreads) always the move for beginners or are there better starting points?
• How do you size positions so one bad trade doesn’t wreck the account?
• If you trade META options regularly — what’s your typical setup? DTE, delta, spread width?
Never placed it, just learning. Looking for something I can set up, not stress about, and collect steady. Drop your setups if you’re open to it. No tripping, just curious 😅
u/Big_Worker_2006
u/Big_Worker_2006 — 12 days ago