On February 9, 2021, we sold 6 bull put credit spreads on COTY stock with an expiry set in the next 24 days. For this trade, we got a $228 premium (before commissions)
These trades come as the #21 and #22 in the month of February, according to our trading plan for this month, the premium generated from this trade makes us about 6.64% from our $3,000 monthly goal. .While in total we have reached already 54.59% so far. Awesome.
Here is our trade setup:
BOT 6 COTY MAR 05 '21 - 6.5 + 5 Put Bull Spread -0.38 USD
For this trade, we got a premium of $199.20 (after commissions) or 5.1% potential income return in the next 24 days.
What happens next?
On the expiry date (March 05, 2021) CLOV is trading above $6.5 per share - options expire worthlessly and we keep premium - if COTY trades under $6.5 on the expiry date, we get assigned.
But as we already have collected a premium of $0.33 per share, our break-even price for this trade then is $6.5-$0.33= $6.17
Running Total 2 trades since February 9. 2021
Options Income: $205