Sold 1 Credit Spread on AT&T (NYSE:T) – 1.09% potential income return in 21 days

On March 19, 2021, we sold a bull put credit spread on NYSE:T stock with an expiry set in the next 21 days. For this trade, we get a premium of $37 (before commissions)

We sold this credit spread just shortly we sold 100 shares with T at $28.95. It was agreed to free up some cash and generate some additional income on top of that.

These trades come as the #127 and #128 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 1.61% from our $2,000 monthly goal.  While in total we have reached already 250.39% so far. Awesome.

Here is our trade setup:

  • BOT 1 T APR 09 '21 - 29.5 + 28.5 Put Bull Spread  -0.37 USD 

For this trade, we got a premium of 32.2 USD (after commissions) or a 1.09% potential income return in 21 days.

What happens next?

On expiry date April 9, 2021 T is trading above $29.5 per share -  options expire worthlessly and we keep premium - if T trades under $29.5 on the expiry date, we get assigned

But as we already have collected a premium of 0.32 per share, our break-even price for this trade then is $29.5-$0.32 = $29.18

Selling credit spreads with T stock
Selling credit spreads with T stock
  • Running Total  13 Trades since October 20, 2020
  • Options Income: $181