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Sold 1 Put Option on German E.ON- 2.28% potential income in 42 days
On September 9, 2022, I sold 1 put option on E.ON German multinational utility company with a strike price of EUR 8.4 and with an expiry set on October 21, 2022. Credit received EUR 19.21 ( before commissions)
E.ON SE is a European electric utility company based in Essen, Germany. It runs one of the world's largest investor-owned electric utility service providers.
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 EOAN IBIS OCT 21'22 8.4 PUT @ 0.20 EUR
For this trade, I got a premium of EUR 19.21 (after commissions) or 2.28% potential income return in 42 days (if options expire worthlessly)
What happens next?
On the expiry date, October 21, 2022, EOAN is trading above EUR 8.4 per share - options expire worthlessly and I keep premium and start over - if EON trades below EUR 8.4 on the expiry date, I will get assigned 100 shares.
Break-even price: EUR 8.4-EUR 0.19= EUR 8.21
In case of an assignment, I will turn this trade into a covered call
Running Total 3 Trades since September 5, 2022
Options income: EUR 31