Sometimes investors will hold cash in their account waiting to buy a stock or ETF at a lower than current market price (aka “buy the dip”). This is when our cash secured put worksheet can help. Selling a cash secured put can be a powerful yield enhancement strategy for cash on the sidelines waiting to be invested. Shown below is a simple example of how an investor might use our handy Excel worksheet, available for free downloading here. Please call Successful Portfolios (727) 744-3614 if you have any questions about our worksheet. To read the Option Industry Council’s most excellent explanation of cash secured puts, go here.
Selling Cash Secured Puts Using Our Free Excel Worksheet
About the Author: Parker Evans, CFA, CFP, CMT
Parker Evans, CFA, CFP, CMT is President of Successful Portfolios LLC, an SEC Registered Investment Advisor Firm based in Clearwater, FL. Parker helps individuals, families, and organizations plan and manage custom investment portfolios at leading brokerages including Charles Schwab, TD Ameritrade, and Interactive Brokers.