Cash-Secured Puts explained in 1 minute ⏱

🔗 LINKS 🔗

Trade alerts, trading tools, and weekly live for only $20 / month

Join the free Discord to chat with thousands of other traders & investors:

Options Trading Tracker & Journal:

Support the channel with these referral links:

Social Media:
📸 Instagram: @gregtalksmoney
🐦 Twitter: @gregtalksmoney
📱 TikTok: @gregtalksmoney

🏷 TAGS 🏷

cash-secured puts,cash secured puts,cash secured put,cash secured put strategy,cash secured put options,cash secured put options strategy,cash secured puts strategy,cash secured put income strategy,how to trade cash secured puts,how to sell cash secured puts,cash secured puts for income,income options strategy,options strategies,best options strategies,options trading strategies,options trading,everything options

⚠️ DISCLAIMER ⚠️

I am not a financial advisor. This video is for entertainment and educational purposes only. You (and only you) are responsible for the financial decisions that you make.

[helvicgaming]

I love cash secured puts especially on stocks i'm looking to buy into anyways because i rather wait for a specific price to buy in but what better method of waiting then getting paid until the day it hits that price.

[rheiajean]

Thank you for these videos! They are really helping solidify my Options knowledge by giving words and ability to explain the concepts ive been thinking of/researching. Also really awesome theres no self aggrandising, manchild ego, or general toxic vibe that 99% if anything related to stocks generally has.

[Kelz-R]

Can they assign the 100 shares before the picked date if it goes below the strike price ?

[PhreeThoughtz]

Did this once with a contract that was held for 3 months & the stock dropped a couple of dollars just barely making it a few cents in the money the day of expiration right before the bell. Got assigned & owed a grand. The next couple hours after market into the next day, it shot back up to where it was at before. It's all manipulated. If they want you to have money, you will. If not, they're going to take it. Everything is tracked. Especially if you invest using a phone.

[FreshKicks]

Do you close the option or do you let it expire?

[abdel]

Does covered call work like this too? As in if you sell calls and let it expire, so you get forced to sell 100 shares at the strike price or do you just lose it all?
I'm asking the above question bc for regular call and put options, i know it becomes worthless if you don't sell before expiration

[gem]

So if things don’t go as planned, will you have to pay the collateral price? Real question

[flycow]

Honestly. I don’t like locking up $11, 000 of my funds for at best making $240. That is 2.2% return on my $11, 000

[braddistler]

Risked 10k for $200?? That’s bad math man. It’s called risk reward. I can make $200 with single micro contact mes or mnq and make that in a day. Risk usually around 5-25$ depending on how volatile market is.

[kas]

Can you buy above the current price of the stock? Let say current price is $10 and you choose 40 n you know it wont reach that level.
Is that allowed or you can only choose a strike price below current stock price?

[SA-qxfx]

Why would i risk losing all of my $11, 000 just to make $240 bucks if the price goes against me, makes no sense and does not sound secure at all, what am i missing?

[nicolaspiper]

You’re incorrect on when you can/will be exercised on. If you’re a penny below strike you will be exercised on/assigned as there’s an arbitrage opportunity for people holding the long end of the put.

Also the way you phrase the break even is off.

[deficator]

i want to do this with spy and qqq but the cash required is too expensive

[ateliercandela]

do you need a margin account to sell a covered put? you dont need the shares to get the premium? I thought if you wanted to buy a put you buy to open not sell to open

[james-kvkf]

I don’t understand the collateral part…I’m not saying “I don’t have it” it’s more of a “why do I need it” and “do I need to give it right away”….what’s the point of the collateral…and I’m not asking for someone to talk down to me I’m asking to be educated

[michaell]

When you say you don’t have to buy. It actually means you can’t buy.

[Void-ylom]

Great vid but the problem with this strat is that it takes up way too much capital and the risk is undefined. You could easily lose over a 1000 dollars over one really bad position. I'd suggest going with a short put spread instead which counteracts both the problems of large capital and undefined risk.

[gamingwithpurganarchy]

This seems super risky... $11k for $240 💀

[michael]

Great, lemme just get this 11k out my pocket😂

[Aboma]

So you’re investing $11k for $238? I just want to know how this is good investment