On February 8, 2021, we sold 3 bull put credit spreads on CLOV stock with an expiry set in the next 39 days. For this trade, we got a $219 premium (before commissions)
These trades come as the #19 and #20 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 6.82% from our $3,000 monthly goal. .While in total we have reached already 47.95% so far. Awesome.
Here is our trade setup:
BOT 3 CLOV MAR 19 '21 - 10 + 7.5 Put Bull Spread -0.73 USD
For this trade, we got a premium of $204.6 (after commissions) or 6.82% potential income return in the next 39 days.
What happens next?
On the expiry date (March 19, 2021) CLOV is trading above $10 per share - options expire worthlessly and we keep premium - if CLOV trades under $10 on the expiry date, we get assigned.
But as we already have collected a premium of $0.68 per share, our break-even price for this trade then is $10-$0.68= $9.32
Running Total 2 trades since February 8, 2021
Options Income: $205