Cash-Secured Puts
What It Is
You sell a put option on a stock you are willing to buy. If assigned, you purchase 100 shares at the strike price.
Risk Level
🟢 Low–Medium
(you may be forced to buy shares)
Capital Required
Price of stock × 100
Ideal for capital levels: $1k → $5k → $25k+
When to Use
- You want to acquire shares at a discount
- You want consistent premium income
- You're building long-term value positions
When to Avoid
- High IV meme stocks
- Stocks you don't want to own
- When the market is in a confirmed downtrend
Ideal Tickers
- Low-debt value stocks
- Large caps
- ETFs like SCHD, VOO, QQQM (if affordable)
Progression Fit
Core strategy from $1k–$100k. It is step 1 of the Wheel Strategy.