Credit Spread on Royal Dutch Shell (AMS:RDSA) - Potential income return 1.24% in 45 days (10.05% annualized)

On October 6, 2020, we sold 1 bull put credit spread on Royal Dutch Shell (AMS:RDSA) stock expiring on November 20, 2020. For this trade, we got a EUR 14 premium (before commissions).

Royal Dutch Shell PLC, commonly known as Shell, is a British-Dutch multinational oil and gas company headquartered in the Netherlands and incorporated in England. It is one of the oil and gas "supermajors" and the third-largest company in the world measured by 2018 revenues

These trades come as the #7 and #8 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 2.07% from our $600 monthly goal, while in total we have already reached 13.90% so far.

Here is our trade setup:

  • BOT  1  RDSA NOV 20 '20 - 10 + 9.2 Put Bull Spread    -0.14    EUR  

what can happen next:

If RDSA is trading above our strike price of EUR 10 at the expiry date (November 20, 2020) we keep the premium as options expire worthless. 

In case RDSA is trading below our strike price of EUR 10, we get assigned 100 shares at the strike price EUR 10 

Our potential income EUR 12.42, or 1.24% potential income in 45 days.

Our break-even price: EUR 9.88

Selling credit spreads on RDSA
Selling credit spreads on RDSA
  • Running Total 14 Trades since May 11, 2020

  • Options income: EUR 149