When we sell cash-secured puts, we are generating cash flow and creating opportunities to purchase shares at a discount. Those are the 2 possible outcomes. Now, we can lose money if share value drops below the breakeven price, so position management is as critical as stock and option selection. This article will address a real-life scenario where stock price accelerated exponentially after the trade was initiated. The exit strategy selected was rolling-up. Since this was a holiday-shortened 4-day trade, do we have the time to roll-up.? How about rolling-up twice in the 4-day trade? Here ‘s how I did it.
Real-life trades with Marvel Technology Inc. (Nasdaq: MRVL): 3/30/2026 – 4/2/2026
- 3/30/2026: MRVL trading at $89.46
- 3/30/2026: STO 3 x 4/2/2026 $82.00 cash-secured puts (CSPs) at $0.34
- 3/31/2026: MRVL trading at $98.77
- 3/31/2026: BTC 3 x 4/2/2026 $82.00 CSPs at $0.01
- 3/31/2026: STO 3 x 4/2/2026 $90.00 CSPs at $0.15 (Roll-up #1)
- 4/1/2026: BTC 3 x 4/2/2026 $90.00 CSPs at $0.01
- 4/1/2026: STO 3 x 4/2/2026 $98.00 CSPs at $0.11 (Roll-up #2)
- 4/2/2026: MRVL closes at $107.11, leaving the $98.00 puts expiring worthless with no exercise
Broker statement confirmations of trades
MRVL: Graphic representation of trades
Trade status after contract expiration
- MRVL closed at $107.11 up $16.93 from trade inception ($89.46)
- Additional income generated from 2 roll-ups: $72.00
- Original premium: $102.00
- Total realized premium: $174.00
- Per-Share Cost-basis: $98.00 – $0.58 = $97.42
- Final realized return: $0.58/$97.48 = 0.6%, 54.75% annualized (using a 4-day series of trades)
Discussion
- I used a defensive strike due to market concerns (war with Iran, tariffs among other concerns)
- Robust-IV stocks & ETFs can generate substantial initial returns
- Trades must be monitored whether high- or low-risk
- By rolling up 2x, an annualized initial return of 37.99% became a realized return of 54.75%, an increase of 44.1%
- This was a holiday-shortened 4-day trade (Good Friday)
Expected Price Movement Calculator
The Expected Price Movement Calculator is designed to generate an approximate projected trading range for the underlying security, specific for selected contract expiration date. The at-the-money implied volatility (IV) of the stock or ETF (exchange-traded fund) is used to achieve this valuable information.
Click here for a video & more.
Your generous testimonials
Over the years, the BCI community has been incredibly gracious by sending our BCI team email testimonials sharing stories as to what our educational content has meant to their families. Moving forward, we have decided to publish several of these testimonials in our blog articles. We will never use a last name unless given permission:
Alan & Barry,
Enjoyed the seminar!
Quasar Markets interview:
1. Mad Hedge Investor Summit
Wednesday September 16, 2026
12 PM ET – 1 PM ET
The Collar Strategy: Covered Call Writing with Protective Puts
Protecting covered call trades from catastrophic share loss
Protect our covered call trades by purchasing protective puts. This results in lower risk transactions, with lower, but still significant option returns. This is the strategy Bernie Madoff pretended to use. He called it the split strike conversion strategy, but it was simply a collar. The covered call sets a max gain and the protective put guarantees a maximum loss.
Topics discussed
- What is the collar strategy?
- Uses for the collar
- Entering a collar trade
- Option basics for calls
- Option basics for puts
- Real-life example with NVDA
- What is an option-chain?
- Real-life example using the BCI Trade Management Calculator (TMC)
- Strategy pros & cons
- Event offer
- Q&A
Registration link to follow.
2. Toronto Money Show
September 24 – 25, 2026
MaRS Center, Toronto Canada
Generating a 3rd Income Stream in Existing Stock Portfolios
3. Orlando Money Show
October 5 – 7, 2026
Hilton Orlando Lake Buena Vista
3 presentations:
- Portfolio Overwriting (2-hour Master Class)
- Setting Up High-Performance Option Portfolios
- Selling Cash-Secured Puts: The 2 Outcomes
For more details and registration link, click here.
4. American Association of Individual Investors: National event
Comprehensive 4-part live paid, online workshop event featuring covered call writing, cash-secured puts and advanced strategies.
Dates and times to be confirmed.
5. Triple Edge Investing Summit: Technical Analysis • Options Strategies • ETF Mastery
Saturday January 23, 2027- All-day event
Zoom presentation
All-day paid event
All-day event hosted by 3 experts:
- Dr. Alan Ellman (options)
- Dr. Eric Wish (technical analysis)
- Les Masonson (ETFs)
Hosted by TraderLion University
Details to follow.
