Sold 2 Credit Spreads on AMC – 2.02% potential income return in 7 days

On March 12, 2021, we sold 2 bull put credit spreads on AMC stock with an expiry set in the next 7 days. For this trade, we get a premium of $46 (before commissions)

These trades come as the #90 and #91 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 1.82% from our $2,000 monthly goal.  While in total we have reached already 166.54% so far. Awesome.

AMC Entertainment Holdings, Inc. is an American movie theater chain headquartered in Leawood, Kansas, and the largest movie theater chain in the world. Founded in 1920, AMC has the largest share of the U.S. theater market ahead of Regal and Cinemark Theatres

here is our trade setup:

  • SLD 2 AMC MAR 19 '21 9 Put Option 0.42 USD

  • BOT 2 AMC MAR 19 '21 8 Put Option 0.19 USD

For this trade, we got a premium of 36.2 USD (after commissions) or a 2.02% potential income return in 7 days.

What happens next?

On the expiry date, March 19, 2021, AMC is trading above $9 per share -  options expire worthlessly and we keep premium - if AMC trades under $9 on the expiry date, we get assigned.

But as we already have collected a premium of $0.18 per share, our break-even price for this trade then is $9-$0.18 = $8.82

Selling credit spreads with AMC stock
Selling credit spreads with AMC stock
  • Running Total 41 Trades since August 3, 2020

  • Options Income: $462