Cash-secured put
Get paid to bid below the market, with the cash set aside to buy if you are filled.
The view: You want to own it, but lower.
Construction
| Leg | Qty | Strike at 100 spot |
|---|---|---|
| Short put | 1 | 95 |
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- Max profit
- +90
- Max loss
- -9,410
- Breakeven
- 94.1
- Net cash
- +90
When it fits
You are a willing buyer at a price below spot. Selling the put pays you to wait, and if it is assigned you buy at a level you already chose.
What goes wrong
- Identical payoff to a covered call — the downside is the whole move to zero, less the premium.
- You get assigned exactly when you least want to buy, because the price fell for a reason.
- The cash is tied up for the life of the trade.
Try it properly
The chart above is the real pricing model, limited to three sliders. To change strikes, add legs, switch to futures, or price it against your own volatility assumption, open it in the options P&L calculator — the link under the chart carries this exact position across.
Education, not advice. Payoffs ignore commission, bid-ask spread, assignment risk and financing.