Before diving into my 4th trade, I’ve made a small update to my previous post about My First 3 Otions trades — I’ve added some screenshots to make things clearer. Feel free to check it out if you’d like to see how those trades looked in the app!
📈 Trade #4: AT&T – BULL PUT SPREAD (Closed Early for Small Profit)
For my fourth trade, I opened a bull put spread on AT&T:
- Strategy: Bull Put Spread
- Stock Price (at entry): ~$27.42
- Trade Placed: May 12, 2025
- Original Expiry: June 20, 2025
- Leg 1 – Buy Put
- Strike Price: $25
- Premium Paid: $17
- Leg 2 – Sell Put
- Strike Price: $27
- Premium Received: $56
- Total Commission: $2.84
- Net Premium Received: $39 – $2.84 = $36.16 (on expiry)
I closed it earlier by selling and buying back the BUY PUT and SELL PUT respectively
- Closed Early: June 2, 2025
- Leg 1 – Buy Put
- Sell at $0.05 option price by receiving $5
- Leg 2 – Sell Put
- Buy at $0.25 option price by paying $25
- Total Commission: $2.84
- Net Premium Paid: $5 – $25 – $2.84 = -$22.84
Hence, instead of earning the full $36.16 on expiry, I took a small gain by paying back $22.84 to close the option contract. The net gain is $36.16 – $22.84 = $13.32
It’s really a small gain but okay, I am gaining the experience here.
Summarize It My Way 