Rolled Forward 1 Put option on ETH – 2.34% potential income return in 26 days (32.83% annualized)

On August 11th, 2023, I rolled forward 1 put option on Ethereum crypto coin, a position established at the end of July 2023

I rolled this position forward to the next week's expiry and the same strike price after our previous options expired worthless.

From the premium received, I bought additional 0.00749 ETH itself.

This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset

here is the trade setup:

• SLD 1 ETH AUG 18 '23 1825 Put Option 13.85

The aftermath of this trade + $13.85 (after commissions)

What happens next?

On the expiry date, August 18, 2023, ETH is trading above $1,825 per share -  options expire worthlessly and I keep premium - if ETH trades under $1,825 on the expiry date, I risk getting assigned 1 ETH, and will have to buy them paying $1,825

As I already have collected a premium of $41.77 per coin, my break-even price for this trade is 1,825-41.77= $1,783.23

In case of an assignment, I will turn this trade into a wheel strategy and will start selling covered calls.

Anyhow, if troubled with the strike price near the expiry, I will try to roll it forward and down, preferably for credit, before actually taking the ETH assignment.

• In total: 10 trades since July 23, 2023

• Options premium: $41.77