Sold 1 Credit Spread on NASDAQ:TUR ETF – 2.28% potential income return in 25 days

On March 22, 2021, we sold 1 bull put credit spread on iShares MSCI Turkey ETF (NAsdaq:TUR) stock with an expiry set in the next 25 days. For this trade, we get a premium of $55 (before commissions)

These trades come as the #147 and #148 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 2.51% from our $2,000 monthly goal.  While in total we have reached already 290.84% so far. Awesome.

The iShares MSCI Turkey ETF seeks to track the investment results of a broad-based index composed of Turkish equities.

here is our trade setup:

  • BOT  1  TUR   APR 16 '21 - 22 + 20 Put Bull Spread   -0.55 USD

For this trade, we got a premium of 50.2 USD (after commissions) or a 2.28% potential income return in 25 days.

What happens next?

On the expiry date, April 16, 2021, TUR is trading above $22 per share -  options expire worthlessly and we keep premium - if TUR trades under $22 on the expiry date, we get assigned.

But as we already have collected a premium of $0.50 per share, our break-even price for this trade then is $22-$0.5 = $21.5

Selling credit spreads with TUR ETF
Selling credit spreads with TUR ETF
  • Running Total 2 Trades since March 22, 2021

  • Options Income: $50