Credit Spread on Fortum (HEL:FORTUM) – 1.03% Potential Income Return In 21 Days (17.90% annualized)

On October 30, 2020, we sold a bull put credit spread on HEL:FORTUM stock, set with expiry in the next 21 days (November 20, 2020). For this trade, we got a small EUR 16.5 premium (after commissions)

Fortum Oyj is a Finnish state-owned energy company focusing on the Nordic and Baltic countries, Poland, Russia and India. Fortum operates power plants, including co-generation plants, and generates and sells electricity and heat

These trades come as the #47 and #48 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 2.75% from our $600 monthly goal, while in total we have already reached 91.37% so far.

Here is our trade setup:

  • BOT 1  HEL:FORTUM NOV 20 '20 - 16 + 15.2 Put Bull Spread  -0.2  EUR  

For this trade, we got a premium of 16.5 EUR (after commissions) or 1.03% potential income return in the next 21 days.

What happens next?

On the expiry date (November 20, 2020) HEL:FORTUM is trading above EUR 16 per share -  options expire worthlessly and we keep premium - if HEL:FORTUM trades under EUR 16 on the expiry date, we get assigned.

But as we already have collected a premium of EUR 0.16 per share, our break-even price for this trade then is EUR 16- EUR 0.16= EUR 15.84

Selling Credit spreads on HEL:Fortum Stock
Selling Credit spreads on HEL:Fortum Stock
  • Running Total  2 Trades since October 30, 2020

  • Options Income: EUR 17