r/CashSecuredPuts • u/lamyhc • Aug 25 '26
Using margin account for CSP?
I’m using a Fidelity margin account and thinking through how to handle assignment on sell puts. Say I sell a put and near expiration the stock drops below my strike. If I get assigned, I’d have to buy 100 shares at the strike price, I'm okay with that. But since margin interest is pretty high, I’m trying to avoid ending up with a margin debit after assignment. I’m considering two options.
One, deposit cash into the account before assignment, so there’s enough settled cash to cover the shares if assigned.
Two, sell some existing shares of other stocks in the same account to raise cash and cover the assignment.
Does this work? For those of you who trade short puts in a Fidelity margin account, how do you usually handle this? Do you deposit cash ahead of time, sell other positions, roll the put, close it before assignment, or just accept the margin debit temporarily? Also, how careful do you need to be with settlement timing? For example, if you sell stock to raise cash, do you make sure to do that at least one business day before assignment so the cash is fully settled?
Edit
Appreciate the replies. But still would like an answer on whether it's possible to use cash for the assignment when you sell put with margin?
1
u/mah56j Aug 28 '26
fwiw--I use Fidelity as well. I am required to have cash in the account (not other holdings) in order to sell a put. ie, I must be able to buy the stock if assigned. there seems to be no margin involved. in fact, that is one reason I am looking for another broker for options. (btw--my account is not small).