Sold 2 Credit Spreads on SPCE – 1.95% potential income return in 15 days

On December 08, 2021, I sold 2 bull put credit spreads on SPCE stock with an expiry set in the next 15 days. For this trade, I got a premium of $62.4 (after commissions)

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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:

• BOT 2 SPCE DEC 23 '21 - 16 + 15 Put Bull Spread -0.36 USD

For this trade, I got a premium of 62.4 USD (after commissions) or a 1.95% potential income return in 15 days, if options expire worthlessly

What happens next?

On the expiry date, December 23, 2021, SPCE is trading above $16 per share -  options expire worthlessly and I keep premium - if SPCE trades under $16 on the expiry date, I risk getting assigned 200 shares and will have to buy them for $3,200

But as I already have collected a premium of $0.31 per share, my break-even price for this trade then is $16-$0.31 = $15.69

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