Ep11- Cash-Secured Puts: The Brother from Another Mother

In this episode, Dan dives into a powerful but often misunderstood options strategy: the cash-secured put. Often considered the sibling of the covered call, this strategy blends the best of investing discipline with the premium-collecting power of options trading.

What You’ll Learn:

• Why Dan used to hate cash-secured puts—and what changed his mind
• How selling puts can feel like setting a “limit order with benefits”
• The psychology behind financial freedom and higher-frequency trading
• The critical difference between trading and investing mindsets
• When assignment is part of the plan (and how to make that work for you)
• Key mechanics of the trade: risk, reward, and break-even calculations
• Real-life example: selling puts on WXYZ (Wanda’s Extra Yarn & Zippers Inc.)
• Why many traders stress less with cash-secured puts than with covered calls

Special Segment:

Dan brings on options coach John Kmiecik to talk about:

• How traders use cash-secured puts in one-on-one coaching sessions
• Why this strategy might be less stressful than covered calls
• How to manage trades if you don’t want to be assigned
• The role of sizing, account value, and portfolio allocation when using this strategy
• Common pitfalls like averaging down without a plan

Bonus for Subscribers:

Paid subscribers get access to:

• Video extras that break down P&L diagrams for cash-secured puts
• Real trade examples from Dan’s IRA
• Monthly Ask Me Anything sessions and more

Subscribe on Substack at: wealthbuildingwithoptions.substack.com

Key Quote:

“Cash-secured puts aren’t just trades — they’re a mindset shift. They’re how investors say, ‘I’ll buy the stock… but only at my price.’”

 

Before Investing in Options download Characteristics and Risks of Standardized Options https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf