Larry, I think you have you numbers turned around. The $25 put should sell for much more than the $20. Heck, on intrinsic value alone, the $25 of any month is worth 15/16 on Friday's close. You sell the $25 and buy the $20.
Also, I go out 6 months or so on these things to get a credit of at least $2 before I put them on. $2 1/2 is better. And I never have held one to anywhere close to expiration. The fungibility is what makes them work.
The total risk is $5 less the net premium credit and the interest you draw on your cash during the holding period. The real risk is MUCH less as in the money puts go to intrinsic value quickly and out of the money pick up premium quickly. That is the main reason I like to do credit spreads, either bull, with puts, or bear, with calls, right at the money. Typically, on a decent stock pick (probably not MU), you will have a chance to unwind the short put at a profit long before the expiration date. And the best position in the world, IMHO, is to be long a put or a call free and clear. In other words, make enough on the short so that the long position is free. Then hope for a homerun.
MB
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