Sold 2 Credit Spreads on SDC – 1.07% potential income return in 7 days

On March 05, 2021, we sold 2 bull put credit spreads on NASDAQ:SDC stock with an expiry set in the next 7 days. For this trade, we get a premium of $30 (before commissions)

These trades come as the #48 and #49 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 1.02% from our $2,000 monthly goal.  While in total we have reached already 50.92% so far. Awesome.

Here is our trade setup:

  • BOT 2 SDC MAR 12 '21 - 9.5+ 8.5 Put Bull Spread  -0.15 USD 

For this trade, we got a premium of 20.4 USD (after commissions) or a 1.07% potential income return in 7 days.

What happens next?

On expiry date March 12, 2021, SDC is trading above $9.5 per share -  options expire worthlessly and we keep premium - if SDC trades under %9.5 on the expiry date, we get assigned.

But as we already have collected a premium of $0.1 per share, our break-even price for this trade then is $9.5-$0.1 = $9.4

Selling credit spreads with SDC stock
Selling credit spreads with SDC stock
  • Running Total  69 Trades since April 27, 2020
  • Options income $1,271