Wealth Building With Options

Ep11- Cash-Secured Puts: The Brother from Another Mother

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In this episode, Dan dives into a powerful but often misunderstood options strategy: the cash-secured put. Often considered the sibling of the covered call, this strategy blends the best of investing discipline with the premium-collecting power of options trading.

What You’ll Learn:
  • Why Dan used to hate cash-secured puts—and what changed his mind

  • How selling puts can feel like setting a “limit order with benefits”

  • The psychology behind financial freedom and higher-frequency trading

  • The critical difference between trading and investing mindsets

  • When assignment is part of the plan (and how to make that work for you)

  • Key mechanics of the trade: risk, reward, and break-even calculations

  • Real-life example: selling puts on WXYZ (Wanda’s Extra Yarn & Zippers Inc.)

  • Why many traders stress less with cash-secured puts than with covered calls

    • Special Segment:

    Dan brings on options coach John Kmiecik to talk about:

    • How traders use cash-secured puts in one-on-one coaching sessions

    • Why this strategy might be less stressful than covered calls

    • How to manage trades if you don’t want to be assigned

    • The role of sizing, account value, and portfolio allocation when using this strategy

    • Common pitfalls like averaging down without a plan

      • Bonus for Subscribers:

      Paid subscribers get access to:

      • Video extras that break down P&L diagrams for cash-secured puts

      • Real trade examples from Dan’s IRA

      • Monthly Ask Me Anything sessions and more

        • Subscribe on Substack at:

        wealthbuildingwithoptions.substack.com

        Key Quote:

        “Cash-secured puts aren’t just trades — they’re a mindset shift. They’re how investors say, ‘I’ll buy the stock… but only at my price.’”

         

        Before Investing in Options download Characteristics and Risks of Standardized Options https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdf

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        Wealth Building With OptionsBy Wealth Building With Options