Naked Put on Aegon (AGN:AMS) - Potential income return 5.28% in 66 days (29.19% annualized)

On October 13, 2020, we sold 4 naked puts on Aegon (AGN:AMS) stock expiring on December 18, 2020. For this trade, we got a EUR 54 premium (before commissions).

Aegon N.V. is multinational life insurance, pensions and asset management company headquartered in The Hague, Netherlands. Aegon is listed on the Euronext Amsterdam and is a constituent of the AEX index.

This trade comes as the #12 in the month of October, according to our trading plan for this month, the premium generated from this trade makes us about 8.80% from our $600 monthly goal, while in total we have already reached 31.44% so far.

We call these trades naked because we are trading on margin, in case of an assignment we will borrow funds from the broker to finance the purchase. 

here is our trade setup:

  • SLD 4 AGN DEC 18 '20 2.5 Put Option 0.14 EUR

what can happen next:

AGN is trading above our strike price of EUR 2.5 at expiry date (December 18, 2020), in such case, we keep the premium and probably sell more naked puts to generate additional income. Our max gain is realized in this situatio EUR 52.84, or 5.28% potential income in 66 days if the option contract expires worthless.

In case AGN is trading below our strike price of 2.5, we get assigned 400 shares of AGN at price EUR 2.5 per share. Total EUR 1,000

Break-even: EUR 2.36

Selling Naked puts with AGN stock
Selling Naked puts with AGN stock
  • Running Total  6 Trades since April 16, 2020
  • Options income: EUr 202