Sold 3 Credit Spreads on SDC – 1.38% potential income return in 8 days

On March 11, 2021, we sold 3 bull put credit spreads on NASDAQ:SDC stock with an expiry set in the next 8 days. For this trade, we get a premium of $60 (before commissions)

These trades come as the #81 and #82 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 2.28% from our $2,000 monthly goal.  While in total we have reached already 149.05% so far. Awesome.

Here is our trade setup:

  • BOT 3 SDC MAR 19 '21 - 11+ 9.5 Put Bull Spread  -0.20 USD 

For this trade, we got a premium of 45.6 USD (after commissions) or a 1.38% potential income return in 8 days.

What happens next?

On expiry date March 19, 2021, SDC is trading above $11 per share -  options expire worthlessly and we keep premium - if SDC trades under $11 on the expiry date, we get assigned.

But as we already have collected a premium of $0.15 per share, our break-even price for this trade then is $11-$0.15 = $10.85

Selling credit spreads with SDC stock
Selling credit spreads with SDC stock
  • Running Total  79 Trades since April 27, 2020
  • Options income $1,929