Credit Spread On ET – 2.95% Potential Return In 25 Days

On August 35, 2020, we sold a bull put credit spread on ET stock set with expiry in the next 25 days (September 25, 2020)

Here is our trade setup:

  • BOT 1 ET SEP 25 '20 - 6.5 + 5.5 Put Bull Spread  -0.24  USD  

For this trade, we got a premium of 19.2 USD (after commissions) or a 2.95% potential income return in 25 days.

These trades come as the #60 and #61 in the month of August, and if we stick with our trading plan for this month, the premium generated from this trade makes us about 2.56% from our $750 monthly goal, while in total we have already reached 127.73% from our monthly goal so far.

What happens next?

On the expiry date (September 25, 2020) ET is trading above $6.5 per share -  options expire worthlessly and we keep premium - if ET trades under $6.5 on the expiry date, we get assigned.

But as we already have collectedet a premium of 0.19 per share, our break-even price for this trade then is $6.5-$0.19= 6.31

Selling credit spreads with ET stock
Selling credit spreads with ET stock
  • Running Total  20 Trades since April 6, 2020
  • Options Income: $316