Sold 3 Credit Spreads on CLOV – 6.82% potential income return in 39 days

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

Selling credit spreads with CLOV stock
Selling credit spreads with CLOV stock
  • Running Total 2 trades since February 8, 2021

  • Options Income: $205