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Wednesday, April 14, 2021

Options trade: ARK Innovation ETF (ARKK) credit put spread | 403% ROC

 Wed. 2/24/2021

sell -2 Apr 16, 2021  $100 puts at $1.87 (prob ITM 14.75%)
buy +2 Apr 16, 2021  $70 puts at $0.35 (prob ITM 4%)

net credit:  $1.52 x 2 x 100 = $304

margin:  $517
51 DTE


Wed. 3/31/2021

buy back the 2 short puts at $0.50
let the 2 long puts expire on 4/16/2021

NET PROFIT:  $200.01 (35 days)

Return on capital:  403% (annualized)