Sold 1 Credit Spread on JETS Airline ETF – 1.78% potential income return in 38 days

On September 21, 2021, I sold 1 bull put credit spread on JETS ETF with an expiry set in the next 38 days. For this trade, I got a premium of $40.20 (after commissions)

The U.S. Global Jets ETF (JETS) provides investors access to the global airline industry, including airline operators and manufacturers from all over the world.

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 #31 and #32 in the month of September, according to my trading plan for this month, the premium generated from this trade makes me about 4.2% of my $1,000 monthly goal.  While in total I have reached already 90.18% so far. Awesome

Here is the trade setup:

  • SLD 1 JETS OCT 29 '21 22.5 Put Option 0.91 USD

  • BOT 1 JETS OCT 29 '21 21 Put Option 0.46 USD

For this credit spread, I got a credit of 40.2 USD (after commissions) or a 1.78% potential income return in 38 days, if options expire worthlessly

There is a 60% profit probability for this trade

What happens next?

On the expiry date, October 29, 2021, JETS is trading above $22.5 per share -  options expire worthlessly and I keep premium - if JETS trades under $22.5 on the expiry date, I will get assigned 100 shares and will have to buy them for $2,250

But as I already have collected a premium of $0.4 per share, my break-even price for this trade then will be $22.5-$0.4 = $22.1

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