When most people think about trading options, they picture complex multi-leg spreads, high-stress day trading, or getting burned by sudden market crashes. But one of my favorite approaches to generating consistent income in the stock market is actually one of the simplest: The Cash-Secured Put (CSP).
Over a recent two-month window (spanning from mid-July to early September), I used this straightforward strategy on Advanced Micro Devices (AMD) to rake in a total profit of USD3,253.
In this post, I am pulling back the curtain to show you the exact trade details, capital reserves, dates, and numbers from my trading log.
The Strategy: Cash-Secured Puts Simplified
If you’re new to the concept, a cash-secured put involves selling a put option on a stock you wouldn’t mind owning anyway, while setting aside enough cash in your brokerage account to buy 100 shares per contract if the stock drops below your strike price.
- If the stock stays above your strike: The option expires worthless, and you keep 100% of the premium collected.
- If the stock drops below your strike: You are obligated to buy the shares at the strike price, but your cost basis is effectively lowered by the premium you collected upfront.
Instead of holding these options all the way to expiration, I often look to capture quick profits by buying back the contracts early when a significant chunk of the premium decays in my favor.
The Trade Log: AMD Trades Breakdown
Here is the exact data from my closed positions tracker for AMD over July, August, and September:
| S/N | Sold (Start) Date | Name of Stock | Option Type | Strike Price (USD) | Buy (Close) Date | P/L (USD) | Returns | Time Span |
| 1 | 17-Jul-26 | AMD | SELL PUT | $370.00 | 31-Jul-26 | $553.00 | 1.49% | 14 days |
| 2 | 5-Aug-26 | AMD | SELL PUT | $580.00 | 6-Aug-26 | $500.00 | 3.62% | 1 day |
| 3 | 7-Aug-26 | AMD | SELL PUT | $600.00 | 31-Aug-26 | $300.00 | 2.03% | 24 days |
| 4 | 4-Sep-26 | AMD | SELL PUT | $500.00 | 9-Sep-26 | $1,900.00 | 3.80% | 5 days |
| Subtotal | $3,253 |
Capital Required & Risk Management
To execute cash-secured puts safely, your broker requires you to set aside collateral (cash secured) to cover the potential purchase of the shares.
Let’s look at the capital committed for these specific trades:
- Trade 1 ($370 Strike): Collected USD953.00 in premium initially. Since AMD was trading well above this level, the risk was defined, and the position was closed out on 31-Jul-26 for a USD400 buy-back cost, netting USD553.00.
- Trade 2 & 3 ($580 and $600 Strikes): These higher strike puts collected massive upfront premiums (USD13,800 and USD14,800 respectively) because of the capital required to secure them. For instance, securing a $580 strike put requires setting aside $58,000 in cash. By closing them out early (on 6-Aug and 31-Aug), I captured quick, high-probability gains of $500 and $300.
- Trade 4 ($500 Strike): This was my largest winner of the run. Initiated on 4-Sep-26 with a cash requirement of $47,800 ($478 strike equivalent or adjusted collateral), it was bought back just 5 days later on 9-Sep-26, pocketing a stellar $1,900.00 profit.
Key Takeaways for Options Traders
- You Don’t Need to Hold Until Expiration: Notice how most of these trades were closed out well before their original expiration dates. Once you secure 70-80% of the maximum profit quickly, it often makes sense to close the trade, free up your capital, and eliminate tail risk.
- Capital Efficiency: While cash-secured puts require substantial buying power (especially on high-priced tech growth stocks like AMD), the percentage returns relative to the time span (ranging from 1-day quick scalps to 24-day swings) can significantly outperform standard buy-and-hold during sideways or moderately bullish market conditions.
- Patience and Discipline: Only sell puts on companies you genuinely want to own at a discount if things go south.
Happy trading, and let me know in the comments below if you are currently wheeling any tech stocks in your portfolio!
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