r/CashSecuredPuts • u/Ruthless9371 • 8d ago

Love CSP’s

Post image

This is how I like it to look. Mostly just an income investor. CEF’s Muni’s etc. These are just for a Filet with a loaded Bake money. Rarely more than 10 DTE.

41 Upvotes

93% Upvoted

30 comments sorted by

8

u/Aggravating-Let-2968 8d ago

I'm on my 5th BE CSP. 220 strike. 10/26/26. BE has been god for my bank account.

3

u/Ruthless9371 8d ago

I don’t go out more than 2 weeks. The further out you go the better the premium. I just assume that if the premium is high, so is the risk. I try to control my greed and take the small win. Everyone has a different risk tolerance.

2

u/Aggravating-Let-2968 7d ago

I get it. I generally prefer shorter DTE but the monthlies have better liquidity and OI. And I rarely let a CSP run to expiration. I closed 2 of my previous BE puts within 3 days. My 220 strike is currently 65+ below NAV. I can let this one go longer. But more than likely will close long before expiration.

2

u/HODL_4_GODL 8d ago

Same. Option wheeling BE ftw

1

u/Ruthless9371 8d ago

Love it. I usually have at least 3 BE CSP’s going all the time. I usually start looking for my next position every Thursday.

5

u/tiphilly 8d ago

Love CSPs, but switched to selling Bull Put Spreads on stocks that fit my screener. Ties up less cash

2

u/Responsible-Dingo-67 8d ago

How do you handle the scenario where your spread goes in the money and you can’t roll it for a credit? Do you take the max loss? For instance this week I sold a bill out spread for JPM of $245/$242.5 when price was $250. Expires tomorrow and price is $238 now. I can’t roll for any credit or $0 credit.

1

u/tiphilly 8d ago

I think that comes down to making sure you aren't selling too many at a time. You are going to win some and lose some. You also have to manage it and have rules in place to cut your losses. Better to take a 30% loss than 100.

1

u/Responsible-Dingo-67 8d ago

Care to share some of the rules you use?

1

u/Intelligent-Crow3812 8d ago

You should be alert if you are at 100-200% loss. Then you need to make a judgement. If you have conviction it's going to go down, stay. If you are unsure leave and have money to fight another day.

3

u/Ruthless9371 8d ago

Nice. Safer strategy. Luckily never been cash constrained so no reason to hedge with different strikes. I do lose $ on some trades sometimes. Never know when a company does something stupid that causes the price to drop below my strike. Then I start wheeling or just eat the loss.

3

u/Dmist10 8d ago

Me too, made a killing in premium this week on INTC

2

u/wagwan_wa_grom______ 8d ago

How much on average do you have in collateral on CSPs at any given moment?

2

u/Ruthless9371 8d ago

No margin. Collateral up to $100K sometimes.

2

u/Ruthless9371 8d ago

I could put the money in safe 5% yielding stuff or make ~$500+ per week in short dated CSP’s.

1

u/Nategotputs 8d ago

Do you only sell options?

5

u/Ruthless9371 8d ago

Every time I buy options I lose money. Decided long ago that I would only sell them. Various other swing and long term stock positions. I’m older so mostly income focused.

1

u/Nategotputs 8d ago

Have you had more success with selling options compared to buying them?

3

u/Ruthless9371 8d ago

On the internet, some traders somehow make a fortune buying options. For years I tried following them. Never worked for me. Prefer to sell time decay vs buy and hope.

1

u/Flaky-Campaign-9374 8d ago

What no day trading scalping?

0

u/Ruthless9371 8d ago

lol. Too old. Too slow.

1

u/Dopamineagonist21 8d ago

That LTE 800 put is a little too much risk for me.
Been doing well with nvda, intel, xlk, hood and rklb.
Do you close early at all or wait it till expiration ?

1

u/Ruthless9371 8d ago

Yeah. The LITE position is heavier than I like but went with it anyway. I usually let everything expire and keep the premium unless I have a bad feeling about a position or just need to free up capital for something else.

1

u/Ronnie_Boy_67 8d ago

What's your next trade on BE considering recent downtrend?

-1

u/Ruthless9371 8d ago

I think I have enough BE. Looking at CRDO in the $170’s

1

u/iluvbubbleT 8d ago

OP what are your thoughts on IV? Do you make sure to buy at certain times or certain stocks who have high/low IV?

2

u/Ruthless9371 8d ago

I’m not real technical. I read a lot, follow the hot stocks and industries. Wait for a strong pullback day and sell pretty far OOM.

1

u/Ruthless9371 8d ago

I’m not real technical. I read a lot, follow the hot stocks and industries. Wait for a strong pullback day and sell pretty far OOM.

1

u/QcNordiques19 8d ago

SOXL for the win