Is Cash-Secured Put possible at TD Ameritrade?

Quanto · Dec 7, 2023

TD Ameritrade has the "Covered Call" (CC) options strategy, but the very similar "Cash-Secured Put" (CSP) is missing in the same pick list on the order page (web).
Anybody know whether CSP is possible at all at TDA?
Or is it perhaps possible only via their TOS platform or via API ?
I just asked their support too, but maybe someone here can answer faster. Thx.

Sergio123 · Dec 7, 2023

As long as your account type allows for it. Talk to them.

cesfx · Dec 7, 2023

Quanto said:
TD Ameritrade has the "Covered Call" (CC) options strategy, but the very similar "Cash-Secured Put" is missing in the same pick list on the order page (web).
Anybody know whether CSP is possible at all at TDA?
Or is it perhaps possible only via their TOS platform or via API ?
I just asked their support too, but maybe someone here can answer faster. Thx.

If you can sell a put, which you should if you can do covered calls, and have enough cash to cover underlying excercise... What else do you need?

Quanto · Dec 7, 2023

Sergio123 said:
As long as your account type allows for it. Talk to them.

What do you mean by this? Does your account allow it?
But since it's "Cash Secured" then it should be allowed by default for all account types, IMO.

Quanto · Dec 7, 2023

cesfx said:
If you can sell a put, which you should if you can do covered calls, and have enough cash to cover underlying excercise... What else do you need?

It's about the "combination order" named "Cash-Secured Put", ie. it locks "Strike - Premium" amount of cash in the account for the lifetime of that ShortPut trade, and releases it then if there was no assignment...

Quanto · Dec 7, 2023

Just got this reply from the TDA support:

Thank you for your message. You are welcome to create Cash-Secured Puts here at TD Ameritrade! On the TD Ameritrade website, because it is not listed as a default you can simply use the Custom selection. Then you can select to sell to open a put contract of your choosing! I do apologize for any confusion with it not be listed as a default. It is 100% possible to create a cash-secured put at TD Ameritrade and your account is currently approved to do so. Simply create a sell to open order on a put.

I haven't tried it yet, but I'm afraid doing it via the "Custom" selection will require to have an initial cash amount equal to the full Strike of the option, not the more correct reduced amount of "Strike - Premium".

With "Covered Call" the required cash is "StockPrice - Premium".
It's similar for "Cash Secured Put": "Strike - Premium", but some brokers don't know and require instead the full Strike amount. That's simply wrong b/c the max possible risk ever is just "Strike - Premium".

Sergio123 · Dec 7, 2023

You might want to think about installing TOS and getting comfortable using that platform. I think TDA is being phased out.

Quanto · Dec 7, 2023

Sergio123 said:
You might want to think about installing TOS and getting comfortable using that platform. I think TDA is being phased out.

I just tried the TOS-Web version, but it too has no mention of "Cash-Secured Put".
It seems to have not even the said "Custom" selection of the TDA web, if I'm not mistaken.

Sergio123 · Dec 7, 2023

Quanto said:
I just tried the TOS-Web version, but it too has no mention of "Cash-Secured Put".
It seems to have not even the said "Custom" selection of the TDA web, if I'm not mistaken.

Your just selling a put.

It either lets you or it doesn't.

TheDawn · Dec 7, 2023

Quanto said:
TD Ameritrade has the "Covered Call" (CC) options strategy, but the very similar "Cash-Secured Put" (CSP) is missing in the same pick list on the order page (web).
Anybody know whether CSP is possible at all at TDA?
Or is it perhaps possible only via their TOS platform or via API ?
I just asked their support too, but maybe someone here can answer faster. Thx.

Yes they do, as far as I know.