Credit Spread on Air France KLM SA (EPA:AF) - Potential income return 3% in 38 days (28.8 annualized)

On October 13, 2020, we sold 1 bull put credit spread on Air France KLM SA (EPA:AF) stock expiring on November 20, 2020. For this trade, we got a EUR 10 premium (before commissions).

Air France–KLM S.A., also known as Air France–KLM Group, is a Franco-Dutch airline holding company incorporated under French law with its headquarters at Charles de Gaulle Airport in Tremblay-en-France, near Paris. The group has offices in Montreuil, Seine-Saint-Denis, Paris, and in Amstelveen, Netherlands.

These trades come as the #13 and #14 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 1.4% from our $600 monthly goal, while in total we have already reached 32.85% so far.

Here is our trade setup:

  • BOT  1  AF NOV 20 '20 - 2.8 + 2.4 Put Bull Spread  -0.10  EUR  

what can happen next:

If AF is trading above our strike price of EUR 2.8 at the expiry date (November 20, 2020) we keep the premium as options expire worthless. 

In case AF is trading below our strike price of EUR 2.8, we get assigned 100 shares at the strike price EUR 2.8. Total EUR 280 

Our potential income EUR 8.42, or 3% potential income in 38 days.

Our break-even price: EUR 2.72

Selling credit spreads with Air France stock
Selling credit spreads with Air France stock
  • Running Total 2 Trades since October 13, 2020

  • Options income: EUR 8