Credit Spread on Air France KLM SA (EPA:AF) - Potential income return 4.1% in 32 days (46.76% annualized)

On November 16, 2020, we sold 3 bull put credit spreads on Air France KLM SA (EPA:AF) stock expiring on December 18 20, 2020. For this trade, we got an EUR 54 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 #16 and #17 in the month of November, according to our trading plan for this month, the premium generated from this trade makes us about 10.94% from our $450 monthly goal, while in total we have already reached 64.56% so far.

Here is our trade setup:

  • BOT  1  AF DEC 18 '20 - 4 + 4 Put Bull Spread  -0.18  EUR  

what can happen next:

If AF is trading above our strike price of EUR 4 at the expiry date (December 18, 2020) we keep the premium as options expire worthlessly. 

In case AF is trading below our strike price of EUR 4, we get assigned 300 shares at the strike price of EUR 4. Total EUR 1,200

Our potential income EUR 49.26, or 4.1% potential income in 32 days.

Our break-even price: EUR 3.83

Selling credit spreads with Air France stock
Selling credit spreads with Air France stock
  • Running Total 4 Trades since October 13, 2020

  • Options income: EUR 58