Sold 2 Credit Spreads on Deutsche Lufthansa (FRA:LHA) – 1.91% Potential Income Return In 23 Days

On November 25, 2020, we sold 2 bull put credit spreads on FRA:LHA stock, set with expiry in the next 23 days (December 18, 2020). For this trade, we got a small EUR 36.84 premium (after commissions)

Deutsche Lufthansa AG, commonly known as Lufthansa, is the largest German airline which, when combined with its subsidiaries, is the second-largest airline in Europe in terms of passengers carried.

These trades come as the #36 and #37 in the month of November, according to our trading plan for this month, the premium generated from this trade makes us about 8.18% from our $450 monthly goal, while in total we have already reached 250% so far.

Here is our trade setup:

  • BOT 1  FRA:LHA DEC 18 '20 - 9.6+ 8.6 Put Bull Spread  -0.20  EUR  

For this trade, we got a premium of 36.84 EUR (after commissions) or 1.91% potential income return in the next 23 days.

What happens next?

On the expiry date (December 18, 2020) FRA:LHA is trading above EUR 9.6 per share -  options expire worthlessly and we keep premium - if FRA:LHA trades under EUR 9.6 on the expiry date, we get assigned.

But as we already have collected a premium of EUR 0.18 per share, our break-even price for this trade then is EUR 9.6- EUR 0.18= EUR 9.42

Selling Credti Spreads on Lufthansa stock
Selling Credti Spreads on Lufthansa stock
  • Running Total  4 Trades since November 4, 2020

  • Options Income: EUR 50