Sold 2 Credit Spreads on CCL – 1.59% potential income return in 14 days

On March 26, 2021, we sold 2 bull put credit spreads on CCL stock with an expiry set in the next 14 days. For this trade, we get a premium of $86 (before commissions)

These trades come as the #179 and #180 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 3.82% from our $2,000 monthly goal.  While in total we have reached already 236.59% so far. Awesome.

Here is our trade setup:

  • BOT 2 CCL APR 09 '21 - 24+ 22 Put Bull Spread  -0.43 USD 

For this trade, we got a premium of 76.4 USD (after commissions) or a 1.59% potential income return in 14 days.

What happens next?

On expiry date April 09, 2021, CCL is trading above $24 per share -  options expire worthlessly and we keep premium - if CCL trades under $24 on the expiry date, we get assigned.

But as we already have collected a premium of $0.38 per share, our break-even price for this trade then is $24-$0.38 = $23.62

Selling credit spreads with CCL stock
Selling credit spreads with CCL stock
  • Running Total  2 Trades since March 26, 2021
  • Options income $76