APOL is in a position where you can easily close out the position for $0.05 by buying back the short side ( Nov 55). However, if you decide to do this, it might be a better decidion to buy to open the NOV 45 call for $0.05. Two reasons: 1. It frees up more credit from margin and if APOL should ever come back to challenge your short 55 position. Your newly purchased NOV 45 Call would be worth $10 ( that is $10,000). ( this probably will not happen ) , but it gives you the opportunity to potentially make money if APOL comes back to anything over $45 and you still have the guaranteed profit for this spread. Why close out the 55 if you can go long the 45 Call for the same $0.05 that you would pay to close out the short 55. You give yourself at least a chance to make some money if the stock bounces back to $45 or more.
Think about this one: This is truly a WIN-WIN situation What you would have would look like this:
10 LONG APOL NOV 60
10 SHORT APOL NOV 55
10 LONG APOL NOV 45: any move above 45 gives you additional money A move to $46 would net you for 10 contracts $1,000, $47 = $2,000 and so on, up to a maximum of $10,000 if the stock goes back to $55
or you can just close it out by buying back 55 to close it. If you are going to close the position for the $0.05 you may as well buy the 45 call for $0.05 to open