On March 25, 2021, we bought back 3 bull put credit spread options on FCEL stock and additionally sold 4 new bull put credit spreads with lower strikes prices and expiry further out (roll forward and down). The aftermath of this trade $159 (after commissions)
Originally we opened this trade on March 05: Sold 3 Credit Spreads on FCEL – 5.10% potential income return in 27 days as our strike prices we challenged we decided to roll forward and down.
These trades come as the #170 and #171 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 6.24% from our $2,000 monthly goal. While in total we have reached already 280.75% so far. Awesome.
Here is our trade setup:
- SLD 3 FCEL APR 01 '21 - 11 + 9 Put Bull Spread -0.47 USD
- BOT 4 FCEL APR 30 '21 - 10.5 + 9 Put Bull Spread -0.36 USD
The aftermath for this trade, we got a total premium of $159 (after commissions) or 3.78 % potential income return in 56 days (if options expire worthlessly).In other words, we bought some time and lowered our strike price from $11 to $10.5
What happens next?
On expiry date April 30, 2021 FCEL is trading above $10.5 per share - options expire worthlessly and we keep premium - if FCEL trades under $10.5 on the expiry date, we get assigned.
But as we already have collected a premium of $0.39 per share, our break-even price for this trade then is $10.5-$0.39 = $10.11
Running Total 19 Trades since September 2, 2020
Options income: $658