What if I told you that you could get paid to buy quality stocks at a discount, create steady income in any market, and still profit during bull runs—all with significantly less risk than traditional stock ownership?
Cash-secured puts aren't just working right now—they're experiencing a golden age.
Today's volatile market has created the perfect storm for this strategy.
I've pinpointed seven high-potential plays across three risk tiers that deliver exceptional returns with manageable risk.
However, first, let's ensure we're operating from the same playbook.
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A Cash Secured Put Works Like This:
You identify a company you wouldn't mind owning at a lower price
You set aside cash to potentially buy 100 shares at that price (the "strike price")
You sell someone the right to make you buy those shares at that price (the "put option")
You collect an upfront premium for taking on this obligation
That's it.
Two possible outcomes:
Outcome #1:
The stock stays above your strike price through expiration. You keep the premium as pure profit.
Outcome #2:
The stock falls below your strike price. You buy shares at the strike price (which is lower than where the stock was trading when you sold the put), effectively purchasing a company you wanted anyway at a discount, plus you still keep the premium.
Remember Buffett's famous line about being fearful when others are greedy?
This strategy institutionalizes that mindset.
How I Filter 3,200+ Stocks Down to the Perfect Handful
The VADER system (Volatility-Adjusted Delta Extraction & Ranking) has followed me from the institutional trading desk to my home office.
I'm applying this exact methodology to both my covered call picks and cash-secured puts for years.
The only difference is that with covered calls, we're focusing on upside resistance levels; with cash-secured puts, we're zeroing in on downside support.
I scan 3,217 optionable stocks, filtering for 16 specific criteria, including:
What's left gets sorted into three distinct tiers:
🔒 TIER 1: Conservative Income Plays (8-12% annualized yields) Blue-chip companies with stable earnings, low volatility, and reliable technical support levels. Perfect for retirees and income-focused investors.
⚖️ TIER 2: Balanced Opportunity Zone (15-25% annualized yields) Mid-volatility stocks with strong fundamentals but higher option premiums. Ideal for growth-and-income portfolios.
🔥 TIER 3: STRATEGIC ALPHA GENERATORS (25%+ annualized yields) Strategic earnings plays and volatility opportunities offering exceptional premium yields. These have higher assignment probability but tremendous income potential. For investors comfortable with occasional stock turnover.
The same approach produced 13.2% annual returns with 33% less volatility when I was handling institutional portfolios.
🔒 TIER 1: Conservative Income Plays (Min Assignment Risk)
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