Options / Cash-secured put
Payoff at expiry for a generic example with the stock at 100. Green is profit, red is loss, dashed lines are break-even prices.
You sell a put and keep enough cash to buy the shares if assigned. You collect premium and may end up owning the stock at the strike, less the premium.
When it is used: When you would be happy to own the stock at a lower price and want to be paid while you wait.
Main risk: If the stock falls far below the strike you own it at a loss, cushioned only by the premium.
- Net credit
- $240 per contract
- Max gain
- +$240
- Max loss
- Large (stock to zero)
- Break-even
- 92.6
- Legs
- 1
The legs in this example
| Action | Contract | Strike | Example price |
|---|---|---|---|
| Sell | 1 put | strike 95 | $2.40 per share |
Research that fits this view
Our latest Buy-rated company research, for readers who want to see the thinking behind a bullish view. This is a link to research, not a trade idea.
- SM: Buy-rated research (published 2026-10-30)
- GFI: Buy-rated research (published 2026-10-03)
- CAR: Buy-rated research (published 2026-09-19)
Results for this strategy
We track our own hypothetical examples privately and publish each result at least 30 days after the play has closed, wins and losses together, once there are enough closed plays to say something. None have closed yet. This table will list every closed play with its expiry result and a link to the research it came from.
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