Investment and Options Strategist
Have you ever wished you could pick up shares of a company you like, but only if the price drops to your level? And get paid while you wait? With a cash-secured put, that’s exactly what you can do.
This strategy lets you set your own buy price—and receive an immediate cash payment for your willingness to buy. It’s a tool many patient, long-term investors use, especially in uncertain markets like the one Intel (INTC) faces today.
A cash-secured put means selling a put option while holding enough cash in your account to buy the stock if assigned.
Here’s how it works:
You agree to buy 100 shares of Intel at a price you choose (“strike price”) by a set date. In return, you get paid a premium up front.
If the price never falls to your chosen level, you simply keep the premium. If it does, you buy the shares at your preferred price—possibly cheaper than the current market.
Let’s use today’s real numbers, and walk through every step.
Intel’s share price has fallen sharply over several years. For a long-term investor, this might be a buying opportunity—but what if you could get in at an even better price, and earn some income for waiting?
Suppose you want to buy Intel at $20 per share—a price below the current market.
Here’s what can happen:
| Scenario | What happens | Net cost per share | Outcome |
|---|---|---|---|
| INTC stays above $20 at expiry | Keep $46, no shares bought | $0 | Earn $46 income |
| INTC falls below $20 at expiry | Buy 100 shares at $20 each | $19.54 | Own INTC at discount |
| INTC drops well below $20 | Buy 100 shares, paper loss below $19.54 | $19.54 | Loss, as with stock |
Q: What if Intel falls a lot after I’m assigned?
A: You’ll own shares at $19.54. The risk is just like buying shares outright, minus the premium.
Q: What happens to my cash while I wait?
A: It stays set aside (“secured”) in your account. You can’t use it for other trades, but you earn the premium up front.
Q: Is there a risk I won’t get the shares?
A: Yes, if Intel doesn’t fall below $20, you simply keep the premium and don’t buy the stock. Many investors repeat this process until they get assigned.
A cash-secured put lets you get paid to name your price on Intel. You either buy at a discount or keep the premium. It’s a practical, conservative strategy for patient investors—especially when the market is uncertain, and premiums are elevated.
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