Retail investor: I nailed the April bottom. Sold cash secured puts right at the low & they all expired worthless. Perfect trade.


Me: You timed the bottom perfectly... & still left a fortune on the table.
Retail investor: How?? I won the trade.
Me: What did your cash do while that put was open?
Retail investor: ...sat in my account securing it. That's the whole point.
Me: $Q ran 24% off that low to now. Your $100k sat there & collected a few thousand bucks of premium... while $100k of SHARES would've become $124k.
Retail investor: ...I made 1% on the greatest dip of the year.
Me: Perfect timing, wrong structure. I sold puts at that same bottom... portfolio secured. My money was IN the shares riding the 24% AND collecting premium on top.
I hope the flaw of CSPs is clear now.
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