Sold 3 Credit Spreads on PEIX – 5.03% potential income return in 17 days

On December 29, 2020, we sold 3 bull put credit spreads on PEIZ stock with an expiry set in the next 17 days. For this trade, we get a premium of $108 (before commissions)

These trades come as the #50 and #51 in the month of December, according to our trading plan for this month, the premium generated from this trade makes us about 8.23% from our $1,100 monthly goal. While in total we have reached already 223.90% so far. Awesome.

Here is our trade setup:

  • BOT 3 PEIX JAN 15 '21 - 6+ 5 Put Bull Spread  -0.36 USD 

For this trade, we got a premium of 90.60 USD (after commissions) or a 5.03% potential income return in 17 days.

What happens next?

On expiry date January 15, 2021 PEIX is trading above $6 per share -  options expire worthlessly and we keep premium - if PEIX trades under 6 on the expiry date, we get assigned.

But as we already have collected a premium of $0.30 per share, our break-even price for this trade then is $6-0.30 = $5.70

Selling credit spreads with PEIX stock
Selling credit spreads with PEIX stock
  • Running Total  2 Trades since December 29, 2020
  • Options income $91