Credit Spread on PFE – 1.38% potential income return in 32 days

On December 28, 2020, we sold a bull put credit spread on PFE stock with an expiry set in the next 32 days. For this trade, we get a premium of $54 (before commissions)

These trades come as the #48 and #49 in the month of December, according to our trading plan for this month, the premium generated from this trade makes us about 4.47% from our $1,100 monthly goal. While in total we have reached already 215.67% so far. Awesome.

Here is our trade setup:

  • BOT 1 PFE JAN 29 '21 - 35.5 + 33.5 Put Bull Spread  -0.54 USD 

For this trade, we got a premium of 49.2 USD (after commissions) or a 1.38% potential income return in 32 days.

What happens next?

On expiry date January 29, 2021 PFE is trading above $35.5 per share -  options expire worthlessly and we keep premium - if PFE trades under $35.5 on the expiry date, we get assigned.

But as we already have collected a premium of $0.49 per share, our break-even price for this trade then is $35.5-0.49 = $35.01

Selling credit spreads with PFE stock
Selling credit spreads with PFE stock
  • Running Total  6 Trades since November 18, 2020
  • Options income $150