Bullish / neutral
Cash-Secured Put
Get paid to wait for a lower entry.
Sell a put and set aside the cash to buy the shares if assigned. You keep the premium if the price stays up; if it drops, you buy at the strike (effectively at a discount thanks to the premium). Same payoff shape as a covered call.
Construction
Sell 1 put, cash set aside to buy.
Max profit
Premium received
Max loss
Strike − premium (down to price 0)
Breakeven
Strike − premium
Play with the payoff
Bullish / neutral
At expiryToday (30d, 30% IV)
Max profit
$5.00
Max loss
−$95.00
Breakeven
$95.00
Best when
- You'd be happy to own the shares at the strike
- You expect the price to hold or rise
- You want income while waiting for an entry