Obsidian Academy
Cash-Secured Put
Agree to buy an asset at a lower strike in exchange for premium. If assigned, you own the asset at a discount.
When to use
You want to own an asset but only at a lower price than it's trading today. Write a put at that target strike. If the asset stays above the strike → option expires worthless, you keep the premium. If it drops below → you're assigned at the strike (your effective cost = strike − premium, so you buy at an even deeper discount).