Sold 1 Credit Spread on VTRS – 1.28% potential income return in 32 days

On February 22, 2021, we sold a bull put credit spread on VTRS stock with an expiry set in the next 32 days. For this trade, we get a premium of $24 (before commissions)

These trades come as the #45 and #46 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 0.64% from our $3,000 monthly goal.  .While in total we have reached already 124.08% so far. Awesome.

Viatris Inc. is a U.S.-based global healthcare company formed through the combination of Mylan and Upjohn in November 2020. At the time of the combination, Michael Goettler became CEO of the new company. Following the combination, the company began trading on the NASDAQ using the ticker symbol VTRS.

Here is our trade setup:

  • BOT 1 VTRS MAR 26 '21 - 15 + 14 Put Bull Spread  -0.24 USD 

For this trade, we got a premium of 18.2 USD (after commissions) or a 1.28% potential income return in 32 days.

What happens next?

On expiry date March 26, 2021 VTRS is trading above $15 per share -  options expire worthlessly and we keep premium - if VTRS trades under $15 on the expiry date, we get assigned.

But as we already have collected a premium of $0.19 per share, our break-even price for this trade then is $15-0.19 = $14.81

Selling credit spreads with VTRS stock
Selling credit spreads with VTRS stock
  • Running Total  5 Trades since November 19, 2020
  • Options income $73