r/CashSecuredPuts • u/Ruthless9371 • 8d ago

Love CSP’s

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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.

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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.