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.’”

Disclosure:

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, investors must read Characteristics and Risks of Standardized Options (ODD) which can be found at https://www.theocc.com/company-information/documents-and-archives/options-disclosure-document

Don’t trade with money you are not prepared to lose. Anything discussed on this show is intended to be generalized information and not intended to be a recommendation to buy or sell any security. The host and guests are not familiar with listeners’ specific situations. For trading information relevant to your specific needs, speak with a licensed broker or advisor.  

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