Selling Puts To Buy Stock May 2026

Selling puts to buy stock, often called a (CSP) strategy, allows you to potentially acquire shares at a discount while getting paid to wait. Instead of buying a stock at its current market price, you sell a contract that obligates you to buy it at a lower "strike price". How the Strategy Works

There are two primary outcomes at the contract's expiration: selling puts to buy stock

: The option expires worthless. You keep the entire premium as profit and do not buy the stock. Selling puts to buy stock, often called a

When you sell a put option, you receive an upfront payment called a . To make it "cash-secured," you must set aside enough cash in your brokerage account to cover the cost of the shares if you are forced to buy them. You keep the entire premium as profit and