Sold 1 Credit Spread on INTC – 0.81% potential income return in 24 days

On October 19, 2021, I sold 1 bull put credit spread on INTC stock with an expiry set in the next 24 days. For this trade, I got a premium of $43.2 (after commissions)

Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California, in Silicon Valley

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.

These trades come as the #19 and $20 in the month of October, according to my trading plan for this month, the premium generated from this trade makes me about 7.2% of my $600 monthly goal.  While in total I have reached already 53% so far. Awesome!

Here is the trade setup:

  • SLD 1 INTC NOV 12 '21 53 Put Option 1.01 USD

  • BOT 1 INTC NOV 12 '21 51 Put Option 0.53 USD

For this trade, I got a premium of 43.2 USD (after commissions) or a 0.81% potential income return in 24 days, if options expire worthlessly

What happens next?

On the expiry date, November 12, 2021, INTC is trading above $53 per share -  options expire worthlessly and I keep premium - if INTC trades under $53 on the expiry date, I will get assigned 100 shares and will have to buy them for $5,300

But as I already have collected a premium of $0.43 per share, my break-even price for this trade then is $53-$0.43 = $52.57

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