Sold 2 Credit Spreads on BLDP – 1.82% potential income return in 24 days

On March 23, 2021, we sold 2 bull put credit spreads on BLDP stock with an expiry set in the next 24 days. For this trade, we got a $90 premium (before commissions)

These trades come as the #149 and #150 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 4.02% from our $2,000 monthly goal.  While in total we have reached already 294.86% so far. Awesome.

Ballard Power Systems Inc. is a developer and manufacturer of proton exchange membrane fuel cell products for markets such as heavy-duty motive, portable power, material handling as well as engineering services. Ballard has designed and shipped over 400 MW of fuel cell products to date

This trade idea was originally posted by Karl on Global Investor page

Here is our trade setup:

  • BOT 2 BLDP APR 16 '21 - 22 + 19 Put Bull Spread  -0.45 USD

For this trade, we got a premium of $80.4 (after commissions) or a 1.82% potential income return in the next 24 days.

What happens next?

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

But as we already have collected a premium of $0.40 per share, our break-even price for this trade then is $22-$0.40= $21.60

Selling credit spreads with BLDP stock
Selling credit spreads with BLDP stock
  • Running Total 2 trades since March 23, 2021

  • Options Income: $80