I had to rewrite this post due to some confusion on my behalf.
While tinkering with verticals it occurred to me, what if I sell a very deep ITM vertical? So I checked it out, and the risk/reward seems to me too good to be true. Is there something I am missing?
If I got this right I would be selling a DITM vertical call if I expected the market to fall, but not sure when it was going to happen….
For example at the beginning of last week I could have sold a SPY 244/245 vertical that…