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Cash Secured Put: Generating passive income the right way
By New Academy of Finance  •  April 7, 2021
TweetSharePinShare0 Shares Selling cash secured put is typically one of the most common option strategies to generate a steady stream of income on a monthly basis. There are two ways you can play it: Short-term using a trading mindset or long-term using an investing mindset. What do I mean by that? If you are a value investor and wish to purchase a stock that you like (and willing to hold for the long term) with a certain level of “margin of safety” or MOS for short, you might want to SELL a cash secured put on the stock. If the stock dips below your Sell Put Strike, you are OK with ownership of the stock (with the cost being the strike price level).

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Quick example: AAPL Assume you wish to own AAPL for the long term but believe that $120 is a fair...
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By New Academy of Finance
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