Sold 3 Credit Spreads on ZNGA – 2.12% potential income return in 25 days

On March 22, 2021, we sold 3 bull put credit spreads on ZNGA stock with an expiry set in the next 25 days. For this trade, we got a $78 premium (before commissions)

These trades come as the #144 and #145 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 3.18% from our $2,000 monthly goal.  While in total we have reached already 287.75% so far. Awesome.

Zynga Inc. is an American social game developer running social video game services and founded in April 2007 with headquarters in San Francisco, California, United States. The company primarily focuses on mobile and social networking platforms. Zynga states its mission as "connecting the world through games."

Here is our trade setup:

  • BOT 3 ZNGA APR 09 '21 - 10 + 9 Put Bull Spread  -0.26 USD

For this trade, we got a premium of $63.6 (after commissions) or a 2.12% potential income return in the next 25 days.

What happens next?

On the expiry date (April 9, 2021) ZNGA is trading above $10 per share -  options expire worthlessly and we keep premium - if ZNGA trades under $10 on the expiry date, we get assigned.

But as we already have collected a premium of $0.21 per share, our break-even price for this trade then is $10-$0.21= $9.79

Selling credit spreads with ZNGA stock
Selling credit spreads with ZNGA stock
  • Running Total 4 trades since January 22, 2021

  • Options Income: $169