It is not true that the maximum profit we can generate with a cash-secured put trade is the original put premium. Blue Collar Investors have an arsenal of exit strategies that allow us, not only to mitigate losses, but also to enhance gains. In this article, 4 put contracts with 2 different strikes will be analyzed to demonstrate this assertion. All trades are taken directly from one of my brokerage accounts.

 

Real-life example with Solaris Energy Infrastructure Inc. (NYSE: SEI)

• 1/20/2026: SEI trading at $55.77
• 1/20/2026: STO 2 x 2/20/2026 $42.50 puts at $1.16
• 1/20/2026: STO 2 x 2/20/2026 $37.50 puts at $0.58
• 2/13/2026: SEI trading at $59.50
• 2/13/2026: BTC 2 x 2/20/2026 $42.50 puts at $0.35
• 2/13/2026: STO 2 x 2/20/2026 $52.50 puts at $0.95 (rolled up)
• 2/13/2026: BTC 2 x 2/20/2026 $37.50 puts at $0.08
• 2/13/2026: STO 2 x 2/20/2026 $50.00 puts at $0.50 (rolled up)

 

Comparison chart of SEI with the S&P 500 prior to and during the put trades

 

Initial calculations prior to rolling up: The BCI Trade Management Calculator (TMC)

Both puts offered significant initial returns (brown & pink cells) as well as substantial protection to breakeven (purple & blue cells). The initial cash generated, $348.00 (green circle), was guaranteed as long as SEI remained above the associated strike prices.

 

Brokerage confirmation of the roll up trades

The additional cash generated by rolling up these 4 contracts was $204.00. The final outcome of these trades is yet to be determined at the time of this writing. Since Monday is a market-recognized holiday (Presidents Day), there are 4 1/2 trading days remaining until contract expirations and I remain vigilant to execute additional exit strategy opportunities, should they present.

 

Discussion

There are at least 10 different exit strategies available to us when selling cash-secured puts. These can be implemented to mitigate losses as well as to enhance profits. This article is an example of the latter, which then debunks the myth that the maximum gain for cash-secured put trades is the original put premium only.

Trade update

SEI dipped below the $50.00 put strike at expiration and I allowed exercise. I, then, sold OTM covered calls on 400 shares and ended up with >120% realized annualized return for the 2-months of option-selling.

 

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This is a unique tool that is used to manage covered call writing and selling cash-secured put trades from start-to-finish. To our knowledge, it’s the only one of its kind anywhere.

Both covered call writing and put-selling sections have a capital adjustment area to ensure the portfolio percent return accuracy when multiple exit strategies are executed in the same contract cycle with the same cash investment.

Learn more here.

 

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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:

Hi Alan,

I’m now 11 months into my journey of trading covered calls.  I’m doing 99% weekly options and have been very pleased with my results.  Still learning each and every week and getting better at making a little extra each week using exit strategies.

Thank you.

Andrew

 

1. MoneyShow Masters Symposium Las Vegas

Tuesday July 21, 2026

Caesars Palace Hotel, Las Vegas

Title: The Put-Call-Put (PCP) or Wheel Strategy

Subtitle: Generating cash flow & buying shares at a discount using covered call writing and cash-secured puts 

Description:

Selling stock options is a proven way to lower our cost-basis and beat the market on a consistent basis. Two such low-risk strategies are covered call writing and selling cash-secured puts. This presentation will detail how to incorporate both strategies into one multi-tiered option-selling strategy where we either generate cash-flow or buy stock at a discount. I refer to this as the Put-Call-Put (PCP) Strategy, also referred to as the wheel strategy.

The basics and pros and cons are discussed as well as a real-life example and introduction into the BCI Trade Management Calculator (TMC). This seminar is appropriate for those who look to generate modest, but repeatable, returns which will enable us to beat the market on a consistent basis while focusing on capital preservation.

 Register here.

2. 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.

3. Toronto Money Show

September 24 – 25, 2026

MaRS Center, Toronto Canada

4. Orlando Money Show

October 5 – 7, 2026

Hilton Orlando Lake Buena Vista

Details to follow.

5. American Association of Individual Investors: NYC Chapter

Date and time to be confirmed.

6. 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.