The cash-secured put, with a real trade
The hedg3 Team
A cash-secured put is one sold put, with the cash to buy the shares set aside from the open. It keeps the premium when the stock finishes above the strike, and buys 100 shares at the strike when it finishes below.
Cash-secured put
CreditIncome AgentThe numbers at expiry
- Max profit: $160, the premium, with XYZ above $95.
- Max loss: $9,340 if XYZ goes to $0: $9,500 for the shares less the $160 premium.
- Breakeven: $93.40: the 95 strike less the $1.60 premium.
- Collateral: $9,500 set aside: the strike times 100 shares.
Why the max loss is $9,340
The stock going to zero sets it. The put obliges you to buy 100 XYZ at $95, $9,500. At $0 those shares are worth nothing, and the $160 premium is kept. The loss starts below $93.40 and grows a dollar a share all the way down, which is why the cash is set aside at the open.
| Sell the 95 put | +$160 |
| Net credit | +$160 |
| 95 put assigned: buy 100 XYZ at $95 | −$9,500 |
| 100 XYZ held, worth $0 | $0 |
| Credit kept from the open | +$160 |
| Max loss | −$9,340 |
Where assignment happens
Below $95 at expiry the put is assigned: 100 XYZ are bought at $95 with the cash set aside, an effective cost of $93.40 after the premium. Many sellers then sell calls against the shares, a covered call. Closing before expiry avoids the assignment.
Winner: SOFI, Sep 8 to Sep 22
| Leg | Contract | Price |
|---|---|---|
| Sell | SOFI 16.5 put | $0.205 |
- Opened
- Sep 8, 2026, 11:00 AM ET · SOFI $18.145
- Net credit
- $0.205 · $20.50 received
- Target
- Buy back at $0.0615 · +$14.35
- Stop
- Held to expiry
- Closed
- Sep 22, 2026, 9:38 AM ET · SOFI $17.16
- How
- Target hit
SOFI was at $18.145 when the 16.5 put was sold for $0.205, with $1,650 set aside to buy the shares. SOFI drifted to $17.16 over two weeks and stayed above the strike, and the target bought the put back at $0.0615 on Sep 22: +$14.35 on the $1,650 held.
Every trade, on the record
The trade above is the Income Agent's most recent settled winner. Every cash-secured put it closes, winners and losers, is on the public track record.
The full strategy page covers the Greeks and when it is used: cash-secured put. Related: covered call.
