Short put / cash-secured put
Sell a put: collect premium, obligated to buy if assigned.
Payoff at expiry — live BTC example
- Sell 76,200 put
Entry greeks (per 1 BTC notional): Δ 0.117 · Γ -0.1420 per 1% · vega $-6.28/pt · theta $168.63/day
30-day backtest — daily expiries
real expired-contract marks · updated 2026-08-21| Underlying | Days | Win rate | Avg/day | Total | Profit factor | Max DD |
|---|---|---|---|---|---|---|
| BTC | 30 | 97% | +0.059% | +1.76% | 4.73 | 0.47% |
| ETH | 30 | 97% | +0.106% | +3.17% | 2.59 | 2.00% |
Daily-expiry replay: enter 24h before settlement at the mark close, settle at intrinsic vs the 11:00 UTC spot close. Mark fills, no fees or spread. P&L in % of entry spot per 1 unit of notional. Past performance of a mechanical replay is not indicative of future results.
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.