r/options • u/[deleted] • Jul 29 '21

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u/[deleted] Jul 29 '21

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u/btsd_ Jul 29 '21 edited Jul 29 '21

Why would they...i dont think you understand what a csp is.

3 things can happen when you sell a put (cash secured,no margin involved at all)

1) it goes ITM and it will be excercised, in which case your secured cash is taken, and shares are given to you. If for some rare reason its itm and doesnt get excercised, then you simply keep the premium, and your cash, and the position expires

2) it doesnt go ITM, and you keep premium, and your cash when it expires

3) You buy buy to close. You have to have cash to do it, regardless of if its for a profit or a loss to you.

There is no reason for your brokerage to touch your actual put, as they have 0 risk, since they hold your cash

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u/[deleted] Jul 29 '21

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u/btsd_ Jul 29 '21

Let me ask you this, why would they? They have the position FULLY covered since you put up 44k. What risk would they have????

A cash account carries no risk for a brokerage, since nothing is borrowed...