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I would like to add that even with a spread you can bankrupt yourself if you are assigned to one side of the leg on expiration day after hours, stock moves agai

I would like to add that even with a spread you can bankrupt yourself if you are assigned to one side of the leg on expiration day after hours, stock moves against you, you aren't notified in time and therefore can't exercise the other leg. It's rare but not that rare.

TuringNYC 6y ago
Can the losses exceed the total account equity, with recourse?
- Pyramus 6y ago
  Theoretically yes, see e.g. the calculations here youtube.com/watch?v=no_q6sJXjm8 I do not know how this is handled in practice and who is ultimately liable to exercise the other leg.