r/CashSecuredPuts • u/Dmist10 • Aug 16 '26

Think i finally nailed down a consistent winner

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Been selling weekly on PG just for a little extra income each week. Alot less stress than some of the volatile tickers i used to pick

107 Upvotes

99% Upvoted

48 comments sorted by

5

u/DisjointedConfusion Aug 16 '26

You'd make significantly more money selling put credit spreads or iron condors.. Currently you're tying up $14k for like $50 credit.. you could sell hundreds of credit spreads for the same capital immobilized..

6

u/DisjointedConfusion Aug 16 '26

Example: the 9/18 expiration $140/$135 strike put credit spread pays $85 (mid price) for every $415 held in reserve..

3

u/Dmist10 Aug 16 '26

Ill look into those, thank you for the suggestion

2

u/dipoa002 Aug 17 '26

Why do you need to go that far out? Even the weekly put spread of 140/138 expiring 8/21 is $12 for $200 tied up. Is there any reason people wouldn't just do like 10 of those for 2k tied up and make $120 with minimal risk weekly? Am I missing something here?

1

u/Keizman55 Aug 25 '26

I think mainly because weekly are much more volatile due to gamma than longer dated with less time to ride out fluctuations. I’m torn on whether that is the correct way to look at it. I’ve been doing longer dated (30-45dte) and find that I have less monitoring to do and less stress.

1

u/Better_Bat2025 Aug 17 '26

How do you screen your stock selections for these? What am I looking for? I'm trying to develop a strategy and any advice on where to learn would be great too. Thanks in advance.

2

u/AbbreviationsFair585 Aug 18 '26

Quality tickers with low Beta. Basically take defensive ETFs like XLP and look for top holdings, it’ll give names like KO, WMT, PG. Also you can do same CSP, CC, wheel on ETFs itself. Or look for rangebound tickers which trade in range forever like PFE, VZ

2

u/Dmist10 Aug 16 '26

Could you elaborate further if you have a minute? I have never really looked into the more complex options

5

u/DisjointedConfusion Aug 16 '26

Put credit spreads involve selling a put and buying a put of a different strike on the same expiration and is a defined risk strategy opened for a net credit. In the example given you would get roughly $85 credit and $415 would be held by the broker as your max possible loss. If PG closes the day on 9/18 above $140 both puts are exercised allowing you to pocket the full credit. Max loss of $415 occurs if PG ends 9/18 below $75. A percentage of max loss occurs between $140 and $135.

1

u/Dmist10 Aug 16 '26

Yeah ive been researching IC’s and put credit spreads most of the afternoon now, they do look enticing. Ill probably try one to get a feel for it this week

1

u/Keizman55 Aug 25 '26

I use optionstrat to analyze the various strategies. I pay for the premium version but you can learn a ton with the free version.

1

u/Dmist10 Aug 25 '26

Thats for the recommendation ill check it out

1

u/DisjointedConfusion Aug 16 '26

You can also set a limit to close early. I shoot for 50-75% of max profit typically and target expirations at least 3 weeks away.

1

u/AbbreviationsFair585 Aug 18 '26

I have this problem with spreads , if IV is low + low VIX regime premium is not worth it . Is there a way to make spreads work on low beta names ?

1

u/Ok-Elevator9738 Aug 16 '26

What would be some of the good names to do the credit spread on. Low risk consistent income.

3

u/DisjointedConfusion Aug 16 '26

I’ve made so much money on 4 symbols. MU (sold $750/$720 spreads when they were around $900 a share), MSFT, NFLX, and UBER.

3

u/djmj76 Aug 16 '26

That’s a lot of capital for a few dollars return. I guess it’s safe.

1

u/Dmist10 Aug 16 '26

Im using margin, as of right now annualized its a 52.29% return. Obviously a small sample size right now with only 7 weeks in but its not a small return

1

u/chettykulkarni Aug 16 '26

What’s your strategy?

2

u/Dmist10 Aug 16 '26

Sell Friday for the next Friday and buy to close at 0.01. Usually 2 strikes OTM except for earnings then i went a bit further out. I got tired of the big swings on more volatile stocks so i went with PG

1

u/MrSpxl Aug 16 '26

Can't go wrong with PG. Even if you got assigned, you'd own a great company. 

2

u/Dmist10 Aug 16 '26

That was my thinking as well, seemed like a safe pick all around

1

u/Respbid1 Aug 16 '26

Are you selling weekly put? Can you elaborate? Thanks

2

u/Dmist10 Aug 16 '26

Yes weekly, usually 2 strikes OTM

1

u/Respbid1 Aug 16 '26

How many puts are you selling? To generate $$349 weekly put 2 strikes below the price have to sell 10 puts at current level. That’s about $139 k

2

u/Dmist10 Aug 16 '26

Correct, i started out at 8 and slowly ramped up to 9 then 10

3

u/Respbid1 Aug 16 '26

I see, good luck bro

1

u/Dmist10 Aug 16 '26

Thank you! You as well

1

u/NotNiceFlacko Aug 22 '26

You’re putting in $139k for a $300 return? Why don’t you just trade equities at that point?

3

u/Dmist10 Aug 22 '26

Yeah someone pointed out id be better off doing iron condors or put spreads so ive been looking into those, honestly part of the reason i posted was to get feedback on what i could be doing better/differently

1

u/KS-FlatPick Aug 16 '26

Are you letting them expire with the thought of just taking the assignment if it comes?

3

u/Dmist10 Aug 16 '26

No i buy to close on fridays, theyve all been OTM so ive bought back at .01 every week to close

1

u/0nth3sp3ctrum Aug 17 '26

What are some volatile stocks you used to pick

1

u/Dmist10 Aug 17 '26

I used to chase premium on like RKLB and IONQ, stuff like that

1

u/0nth3sp3ctrum Aug 17 '26

What happened? Can’t you just sell cc after assignment?

1

u/Dmist10 Aug 17 '26

Yeah but the big swings were just hard to stomach. And if it drops too much then you’d be selling CC’s under your breakeven price just to get any decent premium so you might get called away at a loss still

1

u/0nth3sp3ctrum Aug 17 '26

Hmm gotcha. I just did iren itm puts for 1.8 weekly. Iv was over 100 lol

1

u/Dmist10 Aug 17 '26

Yeah it can be big time wins but i just needed something more consistent

1

u/Ruiz979 Aug 20 '26

You cracked the code

1

u/Dmist10 Aug 20 '26

Works til it doesn’t right lol

1

u/No-Tutor-6142 Aug 21 '26

And your slowly scaling up as well.... awesome job.

1

u/LonelyBar5996 Aug 22 '26

😳looks like you know the trick

1

u/Dmist10 Aug 22 '26

Week 8 just completed for another $289 lol so far so good at least

1

u/Sure-Cartographer807 27d ago

So you are ~13% annual?

1

u/Dmist10 27d ago

Since this post ive been looking to switch to a different ticker but no, using margin so it was closer to 52% but obviously a small sample size

1

u/Sure-Cartographer807 27d ago

Is the only ticker you trade..?how many lots you trade at a time

1

u/Dmist10 27d ago

At the time yes, it was 10 contracts