CSP Finder

What is a cash-secured put?

You sell a put option and set aside enough cash to buy 100 shares at the strike price. You collect the premium up front.

• Stock stays above the strike at expiry: the put expires worthless and you keep the whole premium.
• Stock ends below the strike: you are assigned — you buy 100 shares at the strike. Your effective cost is strike − premium (the breakeven).

Only sell puts on stocks you would be happy to own at the strike price.

How the numbers are worked out

• Premium = mid of bid/ask (last trade when the market is closed). Credit = premium × 100.
• Cash secured = strike × 100. Return = premium ÷ strike. Annualised = return × 365 ÷ days to expiry.
• Chance of keeping the full premium = probability the stock finishes above the strike (Black-Scholes N(d2), using the option's own implied volatility).
• Delta ≈ how much the put moves per $1 in the stock; many CSP sellers aim for 0.15–0.30.
• Expected move = price × IV × √(days/365), about a one-standard-deviation range.

How contracts are scored (0–100)

• Annualised yield (30) · delta in the 0.15–0.30 zone (20) · 20–50 days to expiry (20) · liquidity: bid/ask spread and open interest (15) · cushion below today's price (10) · probability (5).
• Penalties: earnings before expiry (−8), stale quotes (−5), under 8% annualised (−10).
• Conservative ≈ 0.15 delta, Balanced = highest score, Aggressive ≈ 0.33 delta.

Stock grade (A–D)

Trend (price vs 50/200-day averages), implied vs realised volatility (are you being paid enough?), RSI, 60-day support, earnings timing and company size.

Educational tool, not financial advice. Data comes from Yahoo Finance and can be delayed or incomplete. Options carry risk — assignment can leave you holding shares worth well below your strike.