Cash Secured Puts Screener

If your first options trade was a covered call, your next will be a cash secured put.  

On top of the best covered call screener available, a premium subscription to optionDash includes access to our cash secured puts screener.  You can use our advanced screening criteria and optionDash Scoring Systems to find your ideal cash secured put.

Nearly identical to covered calls, you can generate income with cash secured puts.  On this trade, you sell a put option while setting aside all the cash necessary to buy the stock.  In most cases, investors begin with an out-of-the-money put so that the share price has to decline in order to be assigned.  The ideal scenario is that the shares stay the same price (like covered calls), and you simply collect the premium without ever owning the shares.

Most traders just use their covered call screener for their cash secured puts search.  With optionDash, you can specifically search for the best cash secured puts available.  Dividend payments are the biggest factor affecting call and put premiums differently.  You don’t have to worry about it when using our cash-secured put screener.  

How are cash secured puts similar to covered calls?

  • You sell-to-open both options
  • You receive premium (or income) from both trades

How are they different?

  • You own the stock when selling a covered call.  You can own the stock when selling puts, but you aren’t required to.  Instead, you have to have the cash available to purchase the shares.
  • With covered calls, you will be assigned if the price goes above the strike price of the call.  The opposite is true for puts.  You will be assigned if the price drops below the strike price of the put.

Many traders love to use puts to start a covered call position.  They will sell puts until assigned, and then use those shares to sell covered calls.  This is often referred to as the option wheel strategy.  They are also useful if you believe the shares are more attractive at a lower price.  You can sell puts and collect a premium even if the share price never declines.  

So which is better, covered calls or cash secured puts?

We believe both are great ways to lower risk and generate income from a stock portfolio.  

Check out our cash secured put screener during your 14-day free trial or purchase a premium subscription to use the tool.