Sold 1 Put Option on NYSE:GOLD – 2.03% potential income return in 14 days

On July 08, 2022, I sold 1 put option on NYSE: GOLD stock with an expiry set in the next two weeks (July 22). For this trade, I got a premium of $34.6 (after commissions)

NYSE: GOLD - Barrick Gold Corporation is a mining company that produces gold and copper with 16 operating sites in 13 countries. It is headquartered in Toronto, Ontario, Canada.

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 GOLD NYSE Jul22'22 17 PUT 0.37 USD

For this credit spread, I got a credit of 34.6 USD (after commissions) or about 2.03% potential income return in 14 days, if options expire worthlessly

What happens next?

On the expiry date, July 22, 2022, NYSE: GOLD is trading above $17 per share - options expire worthlessly and I keep a premium - if GOLD trades under $17 on the expiry date, I will get assigned 100 shares, and will have to buy the for $1,700

Break-even price: $17-0.34= $16.66

If the options contract is going to expire worthlessly I will proceed with another put option. In case of an assignment, I will happily start selling covered calls on this position

• Profit Probability: 71%

This trade might seem a bit aggressive, but I'm quite Okay getting assigned at the strike price

• Running Total 2 Trades since July 8, 2022

• Options income: $45