SPCE – Naked Put – 4.33% potential return in 25 days

Updated: 16 May, 2020 seen 30

On April 27, 2020, I sold a naked put on SPCE stock with expiry in 25 days. This trade promises a potential return of 4.33%

SPCE is the stock I had in our portfolio since the late October 2019, unfortunately not all worked out as expected and our portfolio experienced a Margin Call in March 2020 (Covid-19 crisis), and SPCE was stock I sacrificed (as SPCE is not a dividend stock)

Now I have decided to take it back using puts. 

Here is my trade setup:

  • SLD 1 SPCE MAY 22 '20 12 Put Option 0.52 USD

For this trade, I got a premium of 52 USD (before commissions) or a 4.3% potential income return in 25 days.

So what happens next?

On expiry day (May 22, 2020) SPCE is trading above $12 per share - my options expire worthless and I keep premium - if SPCE trades under $12 on expiry date I  get assigned 100 shares of SPCE.

But as I already have collected premium of 0.52 per share, my break-even price for this trade then is 12-0.52 = $11.48

In other words, SPCE can fall from the current price of $17.8 way down to $11.48 and I will still be break even (that is the downside protection of about 55%)

Date Type Count Dividend Purchase Price Sale Price Stock Price Strike price Date ox Expiration Option Price Incoming
4/27/2020 STO PUT 1 x     18 12 05/22/2020 $0.52 $0.52

If assigned in the price range $11.50-$12 - I will sell covered calls; if expires worthless, will repeat and double; if SPCE falls below $11.50 till expiry will try to roll forward


Hi! My name is Reinis Fischer (38). Dad, husband, options traderdividend income investorcrypto hedge fund manager, drone enthusiast, world traveler, photographer, and passionate lover of Georgian cuisine (vegetarian). 

If you're looking to diversify your investment portfolio and explore the exciting world of cryptocurrency, be sure to check out my crypto hedge fund for opportunities that align with your financial goals