Sold 2 Credit Spreads on XPEV – 1.13% potential income return in 18 days

On March 22, 2021, we sold 2 bull put credit spreads on XPEV stock with an expiry set in the next 18 days. For this trade, we get a premium of $92 (before commissions)

These trades come as the #142 and #143 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 284.57% so far. Awesome.

Xpeng or Xiaopeng Motors, also known as XMotors.ai, is a Chinese electric vehicle manufacturer. The company is headquartered in Guangzhou, with offices in Mountain View, California in the US, and is publicly traded on the New York Stock Exchange

here is our trade setup:

  • BOT   2   XPEV   APR 09 '21 - 35.5 + 34 Put Bull Spread   -0.46   USD

For this trade, we got a premium of 80.4 USD (after commissions) or a 1.13% potential income return in 18 days.

What happens next?

On the expiry date, April 9, 2021, XPEV is trading above $35.5 per share -  options expire worthlessly and we keep premium - if XPEV trades under $35.5 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 $35.5-$0.4 = $35.1

Selling Credit Spreads with XPEV stock
Selling Credit Spreads with XPEV stock
  • Running Total 2 Trades since March 22, 2021

  • Options Income: $80