Sold 1 Credit Spreads on RBLX – 0.44% potential income return in 7 days

On March 19, 2021, we sold 1 bull put credit spread on RBLX stock with an expiry set in the next 7 days. For this trade, we got a $33 premium (before commissions)

These trades come as the #138 and #139 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 1.41% from our $2,000 monthly goal.  While in total we have reached already 277.82% so far. Awesome.

Roblox Corporation is an American video game developer based in San Mateo, California. Founded in 2004 by David Baszucki and Erik Cassel, the company is the developer of Roblox, which was released in 2006. As of December 2020, Roblox Corporation employs more than 830 people

Here is our trade setup:

  • BOT 1 RBLX MAR 26 '21 - 63+ 61 Put Bull Spread  -0.33  USD  

For this trade, we got a premium of 28.20 USD (after commissions) or 0.44% potential income return in 7 days (if options expire worthlessly)

What happens next?

On the expiry date (March 26, 2021) RBLX is trading above $63 per share -  options expire worthlessly and we keep premium, realizing our max potential from this trade. If RBLX trades under $63 on the expiry date, we get assigned.

But as we already have collected a premium of $0.28 per share, our break-even price for this trade then is $63-$0.28= $62.72

As we are selling credit spreads, our max risk is defined, in case the stock will drop below $61, our second bought put will work as insurance and will minimize our potential losses.

Selling credit spreads with RBLX stock
Selling credit spreads with RBLX stock
  • Running Total  2 Trades since March 19, 2021

  • Options income: $28