Entering An Option Trade

I recently released a new trade where the credit for the trade was 1.75 per option spread. I then got the following email from a member and I thought I would share it and my response to help others that may have the same question

“Hi Allen,

Just going thro. this new RUT trade. The credit  on this trade (0.55) is far less than want u wrote(1.75). If this is not a typo from ur end, will it be still profitable to go for it at. 0.55.?

Thanks”

Here was my response:

NO.
 
It was not a typo. I placed this trade 50 days from expiration which is a lot of time, plus there are two sides, the calls and the puts. .55 might be acceptable if you were doing only one side – either call or put but not both.
 
You are not getting good prices.  Even if I do the trade right now, I still get [...]