Sold 4 Credit Spreads on KODK – 3.36% potential income return in 22 days

On December 30, 2020, we sold 4 bull put credit spreads on KODK stock with an expiry set in the next 22 days. For this trade, we get a premium of $124 (before commissions)

These trades come as the #52 and #53 in the month of December, according to our trading plan for this month, the premium generated from this trade makes us about 9.16% from our $1,100 monthly goal. While in total we have reached already 233.07% so far. Awesome.

Here is our trade setup:

  • BOT 4 KODK JAN 22 '21 - 7.5+ 6.5 Put Bull Spread  -0.31 USD 

For this trade, we got a premium of 100.80 USD (after commissions) or a 3.36% potential income return in 22 days.

What happens next?

On expiry date January 22, 2021 KODK is trading above $7.5 per share -  options expire worthlessly and we keep premium - if KODK trades under 7.5 on the expiry date, we get assigned.

But as we already have collected a premium of $0.25 per share, our break-even price for this trade then is $7.5-$0.25 = $7.25

Selling credit spreads on KODK stock
Selling credit spreads on KODK stock
  • Running Total 4 trades since September 17, 2020

  • Options Income: $134