CASH-SECURED PUTS / START HERE
Learn the mechanics before you risk money.
Five short lessons explain what a cash-secured put does, why premium can be dangerous, and how a reader can reject a weak setup before placing an order.
Your path
LESSON 1 / 6 MIN
What you sell, what you owe
One contract, 100 shares, cash reserve, premium, break-even, and the large-loss path.
LESSON 2 / 5 MINThe 30% distance rule
Test a strike against the working rule. See why distance and break-even differ.
LESSON 3 / 7 MINPremium and hidden risk
Compare rich premium with events, spread, liquidity, and volatility risk.
LESSON 4 / 7 MINOrder to daily review
Use a broker-neutral order flow. Learn why a confirmed fill matters.
LESSON 5 / 7 MINWhen the trade goes wrong
Loss, assignment, expiry, and the moment when waiting makes less sense.
PRACTICE / PRINTABLETwo worksheets
Use a before-order check and a daily review journal with made-up examples first.
How to use this area
- Read the lessons in order. The early lessons explain the risk before the order process.
- Work through each dollar example yourself. The numbers here are illustrations unless a page says otherwise.
- Use the worksheets with made-up numbers before you use any broker.
- Read the risk page before you use the PUTSCAN research preview.
What PUTSCAN does, and what it does not doPUTSCAN lets a user inspect fixed reference data, visible rules, and downside arithmetic. It has no live data, broker connection, or order path. A passing row is still a review item, not an instruction.