Credit Spread on ING Groep (AMS:INGA) – 1.40% Potential Income Return In 37 Days (13.81% annualized)

On Octoebr 14, 2020, we sold a bull put credit spread on AMS:INGA stock, set with expiry in the next 37 days (Novemebr 20, 2020). For this trade, we got a small EUR 8.42 premium (after commissions)

AMS:INGA - The ING Group is a Dutch multinational banking and financial services corporation headquartered in Amsterdam. Its primary businesses are retail banking, direct banking, commercial banking, investment banking, wholesale banking, private banking, asset management, and insurance services. 

These trades come as the #16 and #17 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 36.68% so far.

Here is our trade setup:

  • BOT 1 AMS:INGA NOV 20 '20 - 6 + 5.6 Put Bull Spread  -0.1  EUR  

For this trade, we got a premium of 8.42 EUR (after commissions) or 1.40% potential income return in the next 37 days.

What happens next?

On the expiry date (November 20, 2020) AMS:INGA is trading above EUR 6 per share -  options expire worthlessly and we keep premium - if AMS:INGA trades under EUR 6 on the expiry date, we get assigned.

But as we already have collected a premium of EUR 0.08 per share, our break-even price for this trade then is EUR 6- EUR 0.08= EUR 5.92

Selling Credit Spreads with Inga Stock
Selling Credit Spreads with Inga Stock
  • Running Total  19 Trades since May 11, 2020

  • Options Income: EUR 130