Risk: Low to MediumNeutral to mildly bullishBeginner

Cash-Secured Put

Buy stocks cheaper or collect premium

In a cash-secured put, you sell a put option on a stock you'd like to own at a lower price. You keep enough cash on hand to buy the shares if necessary. The option premium is credited to your account immediately. If the option is exercised, you buy the shares at the strike — effectively at a lower price than today (strike minus premium). If it expires worthless, you simply keep the premium.

Risk

Low to Medium

Market view

Neutral to mildly bullish

Complexity

Beginner

Underlyings

Full Strategy Guide

Advantages

Immediate premium income regardless of price direction
Automatically better entry price if assigned (strike − premium)
Simple to understand and implement
Lower risk than direct stock purchase (premium cushions losses)

Risks

Capital is tied up for the duration of the trade (opportunity cost)
Miss out on price increases above current price (no upside exposure)
Full stock loss possible if price falls sharply after assignment
Assignment in a sharp downturn undesirable if you no longer want to own the stock

Timing

When to Use

1The stock would be attractive to you at a 5-10% lower price

2IV Rank elevated (above 30%) for better premiums

3Sufficient capital available (strike × 100 shares)

4No upcoming earnings event within the term (or intentionally timed around it)

5Underlying fundamentally attractive — you genuinely want to own it if assigned

65 examples

Cash-Secured Put on 65 underlyings

Each stock with its own example trade, strikes, premium, break-even, and interactive payoff diagram.

German & European stocks

· tradeable on Eurex

TechMedium IVIV 26–48%

IndustrialsLow IVIV 17–28%

FinanceLow IVIV 14–25%

AutoMedium IVIV 22–38%

AutoMedium IVIV 20–35%

FinanceHigh IVIV 28–55%

ConsumerMedium IVIV 22–38%

TelecomVery low IVIV 14–22%

MaterialsMedium IVIV 22–38%

IndustrialsHigh IVIV 35–60%

View example

Lufthansa

LHA.DE

IndustrialsMedium IVIV 30–45%

ConsumerHigh IVIV 35–55%

AutoMedium IVIV 25–40%

AutoMedium IVIV 25–40%

EnergyHigh IVIV 35–55%

IndustrialsLow IVIV 20–32%

EnergyLow IVIV 20–30%

EnergyMedium IVIV 25–38%

FinanceMedium IVIV 28–42%

FinanceLow IVIV 18–28%

View example

US stocks

· high options liquidity

AutoVery high IVIV 50–95%

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Amazon

AMZN

ConsumerMedium IVIV 25–42%

TechMedium IVIV 22–38%

TechVery high IVIV 55–90%

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Netflix

NFLX

ConsumerHigh IVIV 30–60%

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JPMorgan

JPM

FinanceMedium IVIV 20–34%

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Bank of America

BAC

FinanceMedium IVIV 24–40%

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Goldman Sachs

FinanceMedium IVIV 22–36%

View example

ExxonMobil

XOM

EnergyMedium IVIV 20–34%

View example

Coinbase

COIN

FinanceVery high IVIV 65–120%

View example

Visa

FinanceLow IVIV 16–26%

View example

Disney

DIS

ConsumerHigh IVIV 25–42%

View example

MicroStrategy

MSTR

Crypto-ProxyVery high IVIV 85–160%

View example

Novo Nordisk

NVO

ConsumerMedium IVIV 30–52%

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Rivian

RIVN

AutoVery high IVIV 60–100%

View example

Supermicro

SMCI

TechVery high IVIV 55–100%

View example

Rocket Lab

RKLB

IndustrialsVery high IVIV 60–110%

View example

IonQ

IONQ

TechVery high IVIV 70–130%

View example

Plug Power

PLUG

EnergyVery high IVIV 70–120%

View example

Robinhood

HOOD

FinanceHigh IVIV 45–75%

View example

Ford

AutoMedium IVIV 30–45%

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Boeing

IndustrialsHigh IVIV 30–50%

TechMedium IVIV 30–45%

View example

Broadcom

AVGO

TechMedium IVIV 30–45%

View example

Qualcomm

QCOM

TechMedium IVIV 30–45%

View example

Chevron

CVX

EnergyLow IVIV 22–35%

View example

GameStop

GME

ConsumerVery high IVIV 80–180%

View example

AMC

ConsumerVery high IVIV 90–200%

View example

Lucid

LCID

AutoVery high IVIV 70–120%

View example

NIO

AutoVery high IVIV 60–100%

View example

SoFi

SOFI

FinanceHigh IVIV 50–80%

View example

MARA

Crypto-ProxyVery high IVIV 80–140%

View example

Riot

RIOT

Crypto-ProxyVery high IVIV 80–140%

View example

CleanSpark

CLSK

Crypto-ProxyVery high IVIV 90–150%

View example

Index ETFs

· highest liquidity worldwide

FAQ

Frequently Asked Questions

How do I choose the strike for a cash-secured put?

Choose a strike at which you genuinely want to buy the stock — typically 3-7% below the current price. Lower strikes offer less premium but more cushion. Higher strikes (closer to the price) offer more premium but more assignment probability. A delta of 0.20-0.35 (corresponding to ~20-35% assignment probability) is considered a balanced starting point.

What is the difference between a cash-secured put and a naked put?

In a cash-secured put, you hold the full capital (strike × 100) as collateral to buy the shares if assigned. In a naked put, no equivalent collateral is held — the broker provides margin capital. Naked puts require margin accounts and are often not permitted for retail investors at German brokers. The risk profile is identical; the difference lies in the capital structure.

When should I roll a cash-secured put?

Rolling makes sense when (a) the stock has fallen below your strike and you don't want to be assigned, or (b) the option has little time value left but you want to earn a new premium. Buy back the old option and sell a new one with a later expiration and/or lower strike for a net credit. Avoid rolling when the stock's fundamentals have deteriorated — in that case, assignment might be the better outcome.

How much capital do I need for a cash-secured put?

You need the strike price × 100 shares as collateral. Example: put on SAP with strike €220 = €22,000 capital tied up per contract. You can subtract the premium received — if you receive €3.00 premium, it's effectively €21,700. This capital requirement makes cash-secured puts on expensive stocks (SAP, ASML) more capital-intensive than on lower-priced stocks.

What is the optimal term for cash-secured puts?

Most traders prefer 2-6 weeks (14-45 days to expiration). In this range, theta decay is most efficient — the option loses more time value per day than longer-dated options. Very short terms (< 14 days) offer little absolute premium; very long ones (> 60 days) offer little flexibility. 30-45 DTE is a good compromise for most underlyings.

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