Learn How To Do Cash Secured Put

Cash Secured Put Income Generating Stratergy

A cash-secured put is an income strategy where you sell a put option while keeping enough cash on hand to purchase the stock if assigned. This approach allows you to potentially buy stocks at a discount while earning a premium upfront. It’s ideal for investors looking to accumulate shares of quality stocks at lower prices, while getting paid to wait.

How It Works

You select a stock you wouldn’t mind owning and sell a put option at a strike price you're willing to buy it at.
You receive a premium upfront for selling the put.
You set aside enough cash to buy 100 shares per contract if the option is exercised.
If the stock stays above the strike price by expiration, the option expires worthless — and you keep the premium.
If the stock drops below the strike price, you'll be obligated to buy it at that price — but you still keep the premium, effectively lowering your cost basis.

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