Discover more from Covered Calls with Reinis Fischer
Sold 1 Credit Spread on VIAC – 0.64% potential income return in 31 days
On September 28, 2021, I sold 1 bull put credit spread on VIAC stock with an expiry set in the next 31 days. For this trade, I got a premium of $25.20 (after commissions)
ViacomCBS Inc. is an American diversified multinational mass media and entertainment conglomerate corporation headquartered at the One Astor Plaza complex in Midtown Manhattan, New York City, United States. The company operates over 170 networks and reaches approximately 700 million subscribers in approximately 180 countries, as of 2019.
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 #46 and #47 in the month of September, according to my trading plan for this month, the premium generated from this trade makes me about 2.52% of my $1,000 monthly goal. While in total I have reached already 116.5% so far. Awesome!
Here is the trade setup:
SLD 1 VIAC OCT 29 '21 39 Put Option 1.10 USD
BOT 1 VIAC OCT 29 '21 38 Put Option 0.80 USD
For this credit spread, I got a credit of 25.2 USD (after commissions) or a 0.64% potential income return in 31 days, if options expire worthlessly
What happens next?
On the expiry date, October 29, 2021, VIAC is trading above $39 per share - options expire worthlessly and I keep premium - if VIAC trades under $39 on the expiry date, I will get assigned 100 shares and will have to buy them for $3,900
But as I already have collected a premium of $0.25 per share, my break-even price for this trade then will be $39-$0.25 = $38.75
In case of assignment, I will turn this trade into a wheel strategy and will start selling covered calls