Sold 1 Credit Spread on INTC – 0.88% potential income return in 43 days

On August 26, 2021, I sold 1 bull put credit spread on INTC stock with an expiry set in the next 43 days. For this trade, I got a premium of $46.20 (after commissions)

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

These trades come as the #30 and #31 in the month of August, according to my trading plan for this month, the premium generated from this trade makes me about 3.33% of my $1,400 monthly goal.  While in total I have reached already 117.24% so far. Awesome.

YTD INTC stock is up by some 7%

Here is the trade setup:

  • BOT 1 INTC OCT 08 '21 - 52 + 50 Put Bull Spread -0.51 USD

For this trade, I got a premium of 46.2 USD (after commissions) or a 0.88% potential income return in 43 days, if options expire worthlessly

What happens next?

On the expiry date, October 08, 2021, INTC is trading above $52 per share -  options expire worthlessly and I keep premium - if INTC trades under $52 on the expiry date, I will get assigned 100 shares and will have to buy them for $5,200

But as I already have collected a premium of $0.46 per share, my break-even price for this trade then is $52-$0.46 = $51.54

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

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