Short Time Spread: Equity Options

Difference between the short strike price and the long strike price x number of contracts

The short option must expire before the long option

(premium received from the sale of the short put(s) or call(s) may be applied to meet the initial margin requirement)

Example:

Sell to open 5 contracts Feb 43 Put at .85
Buy to open 5 contracts Jun 40 Put at 1.40
3 x 5 x 100 = $1,500