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
Running Total 4 trades since September 17, 2020
Options Income: $134