How to Find a Cash-Secured Put
Walk through finding and evaluating a cash-secured put trade using the screener.
A cash-secured put is one of the most popular income strategies in options trading. You sell a put option, collect premium upfront, and agree to buy the stock at the strike price if the option is exercised. The screener helps you find the best candidates.
What Makes a Good Candidate
Before diving into the screener, here's what to look for:
- Elevated volatility — Higher HV rank means richer premiums
- Moderate delta — A delta of 0.15–0.30 gives you a good balance of premium and probability of profit
- Reasonable DTE — 20–45 days is the sweet spot for time decay
- A stock you'd be comfortable owning — Since you might get assigned
Step 1: Open the Puts Tab
Navigate to Screener in the sidebar and click the Puts tab. You'll see a table of put options sorted by setup score.
Step 2: Set Your Delta Range
Use the delta preset buttons to filter by risk level:
- Conservative (0.10–0.20) — High probability of profit (~80–90%), lower premium
- Moderate (0.20–0.35) — Balanced approach, good for most traders
- Aggressive (0.35–0.55) — Higher premium, but more likely to be tested
If you're new to selling puts, start with Moderate or Conservative.
Step 3: Read the Setup Score Columns
Each row is an option contract. Here's what to focus on:
| Column | What to Look For |
|---|---|
| Setup Score | Higher is better — it's a composite ranking |
| Edge % | Positive edge means the option may be slightly overpriced in your favor |
| Return % | The premium you'd collect as a percentage of the cash you need to secure the put |
| Win Rate | Historical percentage of days this contract would have expired worthless |
| DTE | Days to expiration — 20–45 is ideal |
| Delta | Lower delta = higher probability of profit |
Step 4: Evaluate a Specific Result
Click on a contract that looks interesting. Ask yourself:
- Is the return % worth the risk? A 2–5% return over 30 days is solid for conservative puts.
- Is the win rate above 70%? That means historically, this contract would have expired worthless more often than not.
- Does the DTE fit your timeline? Shorter DTE means faster time decay but less premium.
- Do you know this stock? Check the news and fundamentals before committing.
Step 5: Add to Your Watchlist
If you're not ready to trade immediately, add the symbol to your Watchlist so you can track it over time. This also lets you use the "Watchlist Only" filter in the screener later.
Step 6: Log the Trade
If you execute the trade through your broker, record it in the Trade Journal:
- Click Add Trade
- Select Option as the asset type
- Enter: symbol, "Short" side, "Put", strike, expiration, quantity, premium received
- Save
Tips
- Avoid earnings: Don't sell puts right before an earnings announcement unless you're comfortable with a potential gap down. Use the Earnings Calendar tab to check dates.
- Check HV Rank: A higher HV rank (above 50) means volatility is elevated — which means richer premiums for you.
- Consider spreads instead: If the margin requirement is too high for a cash-secured put, look at the Spreads tab for defined-risk alternatives.
Related
- HV Options Screener — Full screener documentation
- Screener Metrics Glossary — What every column means
- Trade Journal — Log your trades
- Options Strategies Explained — Strategy reference