Short put / cash-secured put
BullishLimited profitLimited loss
Sell a put: collect premium, obligated to buy if assigned.
Payoff at expiry — live BTC example
Net credit
$33.94
Max profit
$33.94
Max loss
$64,766
Breakeven
64,766
Example legs (0.7 DTE front)
- Sell 64,800 put
Entry greeks (per 1 BTC notional): Δ 0.089 · Γ -0.1294 per 1% · vega $-4.66/pt · theta $93.73/day
How it works
You collect premium and profit if price holds above the strike. Below it, the position behaves like long exposure acquired at the strike, minus the credit.
When to use it
You are comfortable owning the underlying at the strike price, or expect the level to hold while IV is elevated.
Risks & management
Max loss is nearly the full strike (price to zero). The classic error is sizing by margin instead of by the assignment notional.
Related structures
Example built from live Delta Exchange BTC marks on the nearest constructible expiry; numbers refresh with the chain. Educational content, not investment advice.