Sold 6 Credit Spreads on COTY – 5.1% potential income return in 24 days

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

Selling credit spreads on COTY stock
Selling credit spreads on COTY stock
  • Running Total 2 trades since February 9. 2021

  • Options Income: $205