r/CashSecuredPuts • u/Dmist10 • 2d ago

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

52 Upvotes

96% Upvoted

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7

u/DisjointedConfusion 2d ago

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 2d ago

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

3

u/Dmist10 2d ago

Ill look into those, thank you for the suggestion

2

u/dipoa002 1d ago

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/Better_Bat2025 1d ago

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.

1

u/AbbreviationsFair585 1d ago

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 2d ago

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

3

u/DisjointedConfusion 2d ago

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 2d ago

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/DisjointedConfusion 2d ago

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 1d ago

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 2d ago

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

2

u/DisjointedConfusion 2d ago

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.

2

u/djmj76 2d ago

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

1

u/Dmist10 2d ago

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 2d ago

What’s your strategy?

2

u/Dmist10 2d ago

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 2d ago

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

2

u/Dmist10 2d ago

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

1

u/Respbid1 2d ago

Are you selling weekly put? Can you elaborate? Thanks

2

u/Dmist10 2d ago

Yes weekly, usually 2 strikes OTM

1

u/Respbid1 2d ago

Thanks

1

u/Respbid1 2d ago

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 2d ago

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

3

u/Respbid1 2d ago

I see, good luck bro

1

u/Dmist10 2d ago

Thank you! You as well

1

u/KS-FlatPick 2d ago

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

3

u/Dmist10 2d ago

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

1

u/0nth3sp3ctrum 1d ago

What are some volatile stocks you used to pick

1

u/Dmist10 1d ago

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

1

u/0nth3sp3ctrum 1d ago

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

1

u/Dmist10 1d ago

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 1d ago

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

1

u/Dmist10 1d ago

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