Unlike “Income” strategies (where we want options to expire worthless), with the Smarter Bear, we want our options to gain as much value as possible. Your final result depends on where SPY is sitting relative to your $672 and $668 goalposts.

Scenario 1: The Max Loss

• Price Level: SPY finishes ABOVE $672.

• The Result: Both the put you bought and the put you sold are worthless because the market price is higher than your strikes.

• Professional Action: Do Nothing. The spread expires at zero, and you lose the $152 debit you paid to enter.

Scenario 2: The Max Profit

• Price Level: SPY finishes BELOW $668.

• The Result: Both options are deep “In-The-Money.” The spread has reached its maximum width ($4.00).

• Professional Action: Close Early. Don’t wait for the weekend. Sell the spread back to the market for approximately $4.00 to lock in your $248 profit.

Scenario 3: The Partial Zone

• Price Level: SPY finishes BETWEEN $672 and $668.

• The Result: Your $672 Put has value, but your $668 Put is worthless. You are in a “Partial Profit” or “Salvage” situation.

• Professional Action: Manual Close. You must sell the $672 put before the market closes Friday to capture its remaining cash value and avoid any unexpected stock assignment.