Options Trader Explains Cash-Secured Put Trade on Meta Stock
Jason Luongo describes receiving about $3,930 in premium for selling a put on Meta at a $500 strike expiring January 2028, outlining the upside and the downside if assigned.
Original post · 1 min read
Someone would pay me roughly $3,930 upfront to agree to buy 100 shares of $META at $500.
One put. Expiring January 21, 2028.
If the put expires worthless, I'd keep the full $3,930.
If I get assigned, I'd buy 100 shares at $500 and still keep the premium. That's a $50,000 purchase, with an effective cost of $460.70 per share after the premium.
My existing portfolio could support the margin requirement, allowing my shares to stay invested instead of setting aside the full $50,000 in cash.
That's how a portfolio-secured put would work.
But agreeing to buy at $500 means paying $500 even if the stock falls much further.
If the stock's price is $400 at expiration, I'd be down $6,070 after the premium.
I'd be collecting $3,930 for taking on that buying commitment.

