Sold Credit Spread on AMWL – 2.36% potential income return in 10 days

On March 09, 2021, we sold a bull put credit spread on AMWL stock with an expiry set in the next 10 days. For this trade, we get a premium of $58 (before commissions)

These trades come as the #67 and #68 in the month of March, according to our trading plan for this month, the premium generated from this trade makes us about 2.66% from our $2,000 monthly goal.  While in total we have reached already 130.98% so far. Awesome.

Amwell, formerly known as American Well, is a telemedicine company based in Boston, Massachusetts, that connects patients with doctors over secure video.

here is our trade setup:

  • SLD 1 AMWL MAR 19 '21 22.5 Put Option 0.82 USD

  • BOT 1 AMWL MAR 19 '21 20  Put Option 0.24 USD

For this trade, we got a premium of 53.2 USD (after commissions) or a 2.36% potential income return in 10 days.

What happens next?

On the expiry date, March 19, 2021, AMWL is trading above $22.5 per share -  options expire worthlessly and we keep premium - if AMWL trades under $22.5 on the expiry date, we get assigned.

But as we already have collected a premium of $0.53 per share, our break-even price for this trade then is $22.5-$0.53 = $21.97

Selling credit spread on AMWL stock
Selling credit spread on AMWL stock
  • Running Total  7 Trades since November 19, 2020
  • Options income $166