Credit Spread on ING Groep (AMS:INGA) – 1.97% Potential Income Return In 36 Days (19.97% annualized)

On November 12, 2020, we sold 2 bull put credit spreads on AMS:INGA stock, set with expiry in the next 36 days (December 18, 2020). For this trade, we got a decent EUR 26.84 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 #11 and #12 in the month of November, according to our trading plan for this month, the premium generated from this trade makes us about 5.96% from our $450 monthly goal, while in total we have already reached 33.39% so far.

Here is our trade setup:

  • BOT 2 AMS:INGA DEC 18 '20 - 6.8 + 6 Put Bull Spread  -0.15  EUR  

For this trade, we got a premium of 26.84 EUR (after commissions) or 1.97% potential income return in the next 36 days.

What happens next?

On the expiry date (December 18, 2020) AMS:INGA is trading above EUR 6.8 per share -  options expire worthlessly and we keep premium - if AMS:INGA trades under EUR 6.8 on the expiry date, we get assigned.

But as we already have collected a premium of EUR 0.13 per share, our break-even price for this trade then is EUR 6.8- EUR 0.13= EUR 6.67

Selling Credit Spreads with Inga Stock
Selling Credit Spreads with Inga Stock
  • Running Total  22 Trades since May 11, 2020

  • Options Income: EUR 169