You are not going to find "Cash-Secured Put" as a specific option in a drop-down menu or whatever in the trading software. As @Sergio123 and the customer service from TDA have pointed out to you, it's just selling a put. So if you want to do a "Cash Secured Put", you just need to go to the trading software and open a short position in puts while ensuring you would have enough money to buy the underlying if you ever get assigned. That's essentially what a "cash-secured put" is, short put position secured by enough cash to finance any possible assignments.
Is Cash-Secured Put possible at TD Ameritrade?
- Thread starter Quanto
- Start date
You are not going to find "Cash-Secured Put" as a specific option in a drop-down menu or whatever in the trading software. As @Sergio123 and the customer service from TDA have pointed out to you, it's just selling a put. So if you want to do a "Cash Secured Put", you just need to go to the trading software and open a short position in puts while ensuring you would have enough money to buy the underlying if you ever get assigned. That's essentially what a "cash-secured put" is, short put position secured by enough cash to finance any possible assignments.
The devil is in the detail. You have to be very exact in such important matters, b/c otherwise your whole PnL-analysis can be totally wrong, leading to making inoptimal trades.
CostBase = Strike - Premium
is much different than
CostBase = Strike
I need to know how TDA calculates. I did a follow-up to the support ticket, just hope they will understand the matter and give a professional answer.
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You told me nothing new. You babble much like ChatGPT, useless trash!
Just got this answer from TDA:
That's of course the feared wrong method.
The correct method is to require only "Strike - Premium".
Some months ago someone from Schwab confirmed that they, unlike TDA, require only "Strike - Premium". Hope they will speed-up the migration to the Schwab systems.
Then why did you ask everybody here if cash-secured puts is allowed? You should have asked how much would TDA be required to be set aside to secure to accommodate any assignments from naked puts. And whether it's for a cash account or not is irrelevant.
You told me nothing new. You babble much like ChatGPT, useless trash!
I was trying to answer your question which was not even what you wanted to ask. I was genuinely trying to help you and this is what I get?? Seriously?? LOL
Putting you on Ignore. Good luck with your trading! You are gonna need it, big time.
I know you very well, you AI idiot a$s!...
FYI: I'm now blocking you, since you did not, you just lied as usual. Bye-bye!
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I just don't get it. Why should "premium difference" not matter?
And: Such "Covered" trades are usually for CashAccts only, so it does not have anything to do with "margin".