Cash-Secured Put

A cash-secured put is selling a put option while holding enough cash to buy 100 shares at the strike price, per contract, if you get assigned. You collect the premium up front and keep it no matter what happens next. If the stock stays above the strike, the put expires worthless and you keep the premium with no further obligation; if it falls below the strike, you're assigned 100 shares at that price, with a real cost basis of the strike minus the premium you already collected. It's the first step of the wheel strategy — and the risk is real, since you're still on the hook to buy at the strike even if the stock has fallen well below it by expiration.