Get Paid to Buy Stocks
Think of a cash secured put as getting paid to place a limit buy order. You're saying "I'll buy this stock at $X price" and the market pays you for making that commitment. If the stock stays above your strike, you pocket the premium and move on. If it drops below, you buy shares at a discount (your strike minus the premium you collected). It's the perfect strategy for building positions in stocks you want to own anyway—you either get paid to wait, or you get the stock at a better price than today.
Based on example: Sell AAPL $145 put for $2.50, hold $14,500 cash
Delta tells you the probability of assignment. We show three levels so you can choose based on your goals: • Conservative (0.20Δ): ~80% chance premium expires worthless, lower income • Balanced (0.30Δ): ~70% chance, sweet spot for most traders • Aggressive (0.40Δ): ~60% chance, higher premium but more likely to own shares
Shorter expiration (7-14 days): Quick premium, less time for stock to move against you. Longer expiration (30-45 days): Maximum theta decay efficiency—your time works hardest here. We search the full 7-90 day range and show you the best opportunities.
CSPs typically yield slightly less than covered calls (put skew), but 8%+ annualized still beats most alternatives. Since your cash is tied up as collateral, we want returns that justify the opportunity cost.
We show three delta levels so you can match the strategy to your conviction. Lower delta = safer but less premium. Higher delta = more premium but higher chance of assignment.
Strike is further out of the money. You collect less premium but have ~80% chance of keeping your cash. Best for: income seekers who want steady premiums without buying shares.
The sweet spot. Strike is moderately OTM. You collect solid premium with ~70% chance of expiring worthless. Best for: most traders who want decent income with reasonable assignment risk.
Strike is closer to current price. You collect rich premium but only ~60% chance of keeping your cash. Best for: traders who actually want to own the shares at that price.
When selling puts, you're committing to potentially own the stock—so choose wisely. The best candidates are quality stocks that have pulled back to support levels, giving you a chance to "get paid to wait" for your entry price. Review the company's fundamentals: revenue growth, profit margins, debt levels, and competitive position. Avoid stocks in free-fall or facing existential threats.
These are techniques we've found useful. Your mileage may vary depending on your goals and risk tolerance.
CSP is half of the famous "Wheel" strategy. Sell puts until you get assigned, then immediately sell covered calls on those shares. Get called away? Go back to selling puts. Rinse and repeat for consistent income on stocks you love.
Sell puts at or below key support levels on the chart. If the stock drops to support, you're buying at a level where buyers historically step in. Technical analysis meets income generation.
If your put loses 50% of its value quickly (stock rallied), consider closing early and redeploying. You captured half the premium in less time—your capital can now work on the next trade.
If your put is threatened (stock dropping toward strike), you can "roll" it: buy back the current put and sell a new one at a lower strike and/or further expiration. This gives you more cushion and often collects additional credit.
Getting assigned means you bought a stock you wanted at a price you chose, minus premium collected. That's a win! Start selling covered calls immediately and continue the income cycle.
Never commit more than 5-10% of your portfolio to a single CSP. If you get assigned, you want enough capital to manage the position or average down. Concentration kills portfolios.