Sold 2 Credit Spreads on SPCE – 1.03 % potential income return in 21 days

On January 8, 2021, we sold 2 bull put credit spreads on SPCE stock with an expiry set in the next 21 days. For this trade, we get a premium of $56 (before commissions)

These trades come as the #10 and #11 in the month of January, according to our trading plan for this month, the premium generated from this trade makes us about 1.85% from our $2,500 monthly goal.  While in total we have reached already 18.2% so far. Awesome.

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Here is our trade setup:

  • BOT 2 SPCE JAN 29 '21 - 22.5 + 21.5 Put Bull Spread  -0.29 USD 

For this trade, we got a premium of 46.4 USD (after commissions) or 1.03% potential income return in 21 days.

What happens next?

On expiry date January 29, 2021 SPCE is trading above $22.5 per share -  options expire worthlessly and we keep premium - if SPCE trades under $22.5 on the expiry date, we get assigned.

But as we already have collected a premium of $0.23 per share, our break-even price for this trade then is $22.5-$0.23 = $22.27

Selling credit spreads with SPCE stock
Selling credit spreads with SPCE stock
  • Running Total 26 Trades since April 27, 2020

  • Options Income: $426