Sold 3 Credit Spreads on Deutsche Bank (FRA:DBK) – 2.15% Potential Income Return In 29 Days

On February 18, 2021, we sold 3 bull put credit spreads on FRA:DBK stock, set with expiry in the next 29 days (March 19, 2021). For this trade, we got a small EUR 58.26 premium (after commissions)

Deutsche Bank AG is a German multinational investment bank and financial services company headquartered in Frankfurt, Germany, and dual-listed on the New York Stock Exchange and the Frankfurt Stock Exchange. The bank's network spans 58 countries with a large presence in Europe, the Americas, and Asia

These trades come as the #37 and #38 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 1.94% from our $3,000 monthly goal.  .While in total we have reached already 85.76% so far. Awesome.

Here is our trade setup:

  • BOT 3  FRA:DBK MAR 19 '21 - 9 + 8  Put Bull Spread  -0.21  EUR  

For this trade, we got a premium of 58.26 EUR (after commissions) or  2.15% potential income return in the next 29 days.

What happens next?

On the expiry date (March 19, 2021) FRA:DBK is trading above EUR 9 per share -  options expire worthlessly and we keep premium - if FRA:DBK trades under EUR 9 on the expiry date, we get assigned.

But as we already have collected a premium of EUR 0.19 per share, our break-even price for this trade then is EUR 9- EUR 0.18= EUR 8.81

Selling credit spreads with DBK stock
Selling credit spreads with DBK stock
  • Running Total  9 Trades since September 21, 2020

  • Options income: EUR 136