Sold 2 Credit Spreads on Aegon (AGN:AMS) – 4.1% Potential Income Return In 78 Days

On April 1, 2021, we sold 2 bull put credit spreads on AGN:AMS stock, set with expiry in the next 78 days (June 18, 2021). For this trade, we got EUR 32.84 premium (after commissions)

Aegon N.V. is multinational life insurance, pensions and asset management company headquartered in The Hague, Netherlands. Aegon is listed on the Euronext Amsterdam and is a constituent of the AEX index.

These trades come as the #3 and #4 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 1.17% from our $2,800 monthly goal.  While in total we have reached already 1.83% this month so far. Awesome.

Here is our trade setup:

  • BOT 2 AGN:AMS JUN 18 '21 - 4 + 3.2  Put Bull Spread  -0.18 EUR  

For this trade, we got a premium of 32.84 EUR (after commissions) or 4.1% potential income return in the next 78 days.

What happens next?

On the expiry date (June 18, 2021) AGN:AMS is trading above EUR 4 per share -  options expire worthlessly and we keep premium - if AGN:AMS trades under EUR 4 on the expiry date, we get assigned.

But as we already have collected a premium of EUR 0.16 per share, our break-even price for this trade then is EUR 4- EUR 0.16= EUR 3.84