Credit Spreads

Credit Spread on AAL – 1.38% potential return in 2 days

AAL airline stocksbull put
On July 22, 2020, we sold an additional bull put credit spread on AAL stock with expiry in the next 2 days. Here is our trade setup: BOT 1 AAL JUL 24 '20 - 11 + 10 Put Bull Spread  -0.20  USD   For this trade, we got a premium of 15.2 USD (after commissions) or 1.38% potential income return in just 2 days.  These trades come as the #27 and #28  in the month of July, and if we stick with our trading plan for this month, premium generated from this trade setup makes us about 2.17% from our $…

Credit Spread on NRZ – 2.31% potential return in 35 days

NRZ monthly options
On July 17, 2020, we sold a bull put credit spread on NRZ stock with expiry in the next 35 days. Here is our trade setup: BOT  1  NRZ AUG 21 '20 - 7 + 6 Put Bull Spread    -0.21 USD   For this trade, we got a premium of 16.20 USD (after commissions) or a 2.31% potential income return in 35 days.  These trades come as the #21 and #22  in the month of July, and if we stick with our trading plan for this month, premium generated from this trade setup makes us about 2.31% from our $700 monthly…

Credit Spread on ET – 5.10% potential return in 23 days

ET bull putnatural gas
On July 15, 2020, we sold a bull put credit spread on ET stock with expiry in the next 23 days. Here is our trade setup: BOT 1 ET AUG 07 '20 - 6.5 + 5.5 Put Bull Spread  -0.38  USD   For this trade, we got a premium of 33.2 USD (after commissions) or a 5.10% potential income return in 23 days. That's more than a dollar per day! These trades come as the #14 and #15  in the month of July, and if we stick with our trading plan for this month, premium generated from this trade setup makes us…

Credit Spread on SPCE – 2.72% potential return in 25 days

SPCE bull put
On July 13, 2020, we sold a bull put credit spread on SPCE stock with expiry in the next 25 days. Here is our trade setup: BOT 1 SPCE AUG 07 '20 - 15.5 + 14 Put Bull Spread  -0.47  USD   For this trade, we got a premium of 42.2 USD (after commissions) or a 2.72% potential income return in 25 days. That's more than a dollar per day! These trades come as the #12 and #13  in the month of July, and if we stick with our trading plan for this month, premium generated from this trade setup makes us…

Credit Spread on AAL – 2.47% potential return in 28 days

AAL bull put
On July 10, 2020, we sold a bull put credit spread on AAL stock with expiry in the next 28 days. Here is our trade setup: BOT 1 AAL AUG 07 '20 - 10.5 + 9.5 Put Bull Spread  -0.31  USD   For this trade, we got a premium of 26 USD (after commissions) or a 2.47% potential income return in 28 days. Almost a dollar per day! These trades come as the #10 and #11  in the month of July, and if we stick with our trading plan for this month, premium generated from this trade setup makes us about 3.71%…

Credit Spread on NRZ – 2.3% potential return in 11 days

NRZ bull put
On July 6, 2020, we sold a bull put credit spread on NRZ stock with expiry in the next 11 days. Here is our trade setup: BOT  1  NRZ JUL 17 '20 - 7 + 6 Put Bull Spread    -0.21 USD   For this trade, we got a premium of 16.20 USD (after commissions) or a 2.3% potential income return in 11 days. A bit more than a dollar per day. These trades come as the #8 and #9  in the month of July, and if we stick with our trading plan for this month, premium generated from this trade setup makes us about…

Credit Spread on SDC – 2.8% potential return in 16 days

SDC bull put
On June 24, 2020, we sold a bull put credit spread on SDC stock with expiry in the next 16 days. Here is our trade setup: BOT 1  SDC  JUL 10 '20 - 6.5 + 5.5 Put Bull Spread -0.23 USD    For this trade, we got a premium of 18.20 USD (after commissions) or a 2.8% potential income return in 16 days. A bit more than a dollar per day. This trades comes just shortly we closed another put on SDC to free up our buying power. Naked Put on SDC - Potential income return 8.24% in 28 days It was agreed…

RDSA Bull Put Credit Spread – 4.4% potential return in 39 days

AMS:RDSA dutch stocks
On May 11, 2020, I sold a bull put credit spread on RDSA:AEX stock with expiry in the next 39 days. RDSA:AEX stands for Royal Dutch Shell stock sold on Amsterdam stock exchange. RDSA is one of the rare European stocks I occasionally trade. As I'm trading in Europe all prices are set in EUR. To keep things simple I will enter them 1:1 as USD trades in my trade journal. Here is the trade setup: SLD 1 RDSA JUN 19 '20 15.2 Put Option (ROY)  0.91 EUR  BOT 1 RDSA JUN 19 '20 12.8 Put Option (ROY…

SDC – Credit Spread – 7.5% potential return in 23 days

SDC teledentistry
On May 6, 2020, I sold a bull put credit spread on SDC stock with expiry in the next 23 days. Here is my trade setup: BOT 1 SDC MAY 29 '20 - 7 + 5.5 Put Bull Spread -0.53 USD  For this trade, I got a premium of 53 USD (before commissions) or a 7.5% potential income return in 32 days. So what happens next? On expiry day (May 29, 2020) SDC is trading above $7 per share - my options expire and I keep premium - if SDC trades under $7 on expiry date I  get assigned. But as I already have…