Glossary

Cash-Secured Put (CSP)

By Rohan Fernandes, Founder · Updated 2026-08-21 · Educational reference, not investment advice

A cash-secured put is a short put with the full cash reserved to buy 100 shares per contract at the strike if assigned. The premium is kept either way; assignment converts the reserve into stock at the chosen strike.

The cash reservation is what separates the structure from naked put selling: assignment is a planned acquisition rather than a margin event. The entry criterion that premium never overrides is willingness to own the stock at the strike. CSPs commonly target around 0.25 delta in a 30-45 DTE window and form the first state of the wheel.

Educational reference. Options Scanner is a software tool. It is not a broker-dealer, an investment adviser, or a fiduciary, and nothing on this page is investment advice or a recommendation to buy or sell any security. Options involve risk and are not suitable for every investor; read the Characteristics and Risks of Standardized Options before trading. Examples use hypothetical numbers for illustration only.