People hear "portfolio secured puts" & immediately say "what the heck is that"


Here is what actually happens.
I sold a put on Nvidia.
Collected $25,000 in premium instantly.
My cash balance at the time?
$0 (my money is invested)
Not $145,000 in cash sitting there doing nothing like a cash secured put would need.
Cause selling a put is bullish. Why would you be bullish but have all that cash sitting there doing nothing... makes no sense.
I have:
Zero margin interest collected.
Zero cash drag.
Ratios in check to be fine in market crashes.
Allocated to great companies at good prices.
Beat the market over the last 10 years.
What do I do when I get the premium from selling the puts?
Redeploy it immediately into shares & LEAPS of what I am ultra bullish on. (often the same company)
It is exactly like having a HELOC on your house but pay NOTHING in margin interest.
That is $145,000 that a normal person doing the CSP is doing nothing, meanwhile mine is staying invested in the market compounding.
That single difference is why portfolio secured beats cash secured every time.
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