he made bank 😁

glad it worked out for you in the end 🤗🤑

his breakeven price is not static. it will not change. that is the price he needs it to be at, or below, to make any money on this trade at expiration. monday morning, if spy dips down, he could sell for a profit as there is still some theta value. at expiration, if spy is over his breakeven price, he will lose money. Strike price - premium paid = breakeven price

it absolutely does. he needs SPY to drop below his breakeven for the trade to be profitable

because he paid for the puts. $403 put is profitable if SPY drops below that strike, but if pay $1.75 per contract upfront, you have to recoup that loss as well. $403 - $1.75 = $401.25 cost basis, so to breakeven, it must be at or below that price.Say you bought a cheap put for 1 cent contract, but it isn't gonna be at the $403 strike, it would probably be like $350. It is way cheaper cost because it has such a low chance of the stock dropping below the strike