The #1 question about cash secured puts: "How much money do I need?" The answer is straightforward but expensive. Here's every number you need.

How Cash Collateral Works

When you sell a cash secured put, your broker holds enough cash to buy 100 shares at the strike price. This isn't optional — it's the "cash secured" in cash secured put. The formula:

Cash required = Strike price × 100

If you sell the $180 put on NVDA, your broker locks up $18,000. That cash earns zero interest in most accounts while it's committed (some brokers pay a small yield on idle cash — check yours).

The premium you collect is yours immediately. If you sell the NVDA $180 put for $3.50, you receive $350 on the spot. Your net capital at risk is $18,000 - $350 = $17,650.

Exact Requirements for Each Mag 7 Stock

At conservative strikes (5-8% below current price, Feb 2026):

| Stock | Current Price | Conservative Strike | Cash Required | Premium Received | Net Risk | GOOGL~$175$162$16,200~$170$16,030 NVDA~$193$178$17,800~$370$17,430 AMZN~$201$186$18,600~$210$18,390 AAPL~$264$245$24,500~$170$24,330 MSFT~$397$368$36,800~$330$36,470 TSLA~$411$380$38,000~$1,050$36,950 | META | ~$656 | $605 | $60,500 | ~$870 | $59,630 |

What Your Broker Actually Does

When you submit a CSP order:

  • Broker checks if you have the cash collateral available
  • If yes, the cash is "held" — you can't withdraw it or use it for other trades
  • The premium credits to your account immediately (usually the same day)
  • Cash stays locked until the put expires or you buy it back
  • If assigned, the cash converts to stock at the strike price

    • If you don't have enough cash, the order gets rejected. Simple as that.

    Account Size Recommendations

    Don't put all your money into one CSP. Here's the minimum account size that makes sense:

    | Stock | Cash Required | Recommended Account Size | Why | GOOGL$16,200$25,000+Room for one CSP + cash buffer NVDA$17,800$28,000+Need buffer for volatile stock AMZN$18,600$28,000+Standard buffer AAPL$24,500$35,000+Larger position needs more room MSFT$36,800$55,000+Significant capital, need diversification TSLA$38,000$65,000+Extra buffer for extreme volatility | META | $60,500 | $95,000+ | Very large position, must have room |

    The recommended size assumes you're keeping 35-50% of your account free. This matters because if the stock drops and you get assigned, you might want to sell covered calls, roll the put, or hold cash for other opportunities.

    What If You Have Less Than $15K?

    Sell Puts on Cheaper Stocks First

    Great companies with lower stock prices that work well for CSPs:

  • SOFI ($15): $1,500 collateral. Small premiums but perfect for learning.
  • PLTR ($110): $10,000-11,000 collateral. Decent premiums, tech exposure.
  • AMD ($100): $9,000-10,000 collateral. Semiconductor play with good IV.
  • BAC ($42): $4,000-4,200 collateral. Banking sector, moderate premiums.

    • Use Put Spreads Instead

    A bull put spread lets you sell a put AND buy a cheaper put below it. This caps your risk and reduces capital:

    Example with NVDA:

  • Sell $178 put, buy $168 put
  • Max risk: ($178 - $168) × 100 = $1,000 (instead of $17,800)
  • Premium: ~$180 (instead of ~$370)

    • You earn less but need 94% less capital. The trade-off: if assigned, you don't get the stock — you just lose the spread width. This is more of a directional bet than an income strategy.

    Accumulate Cash First

    If you're saving toward a $20K account, park your cash in a high-yield savings account or money market fund earning 4-5% while you paper trade CSPs. There's no rush. The Mag 7 will still be there when you're ready.

    The Hidden Cost: Opportunity Cost

    Your cash collateral earns nothing while it's locked up. In a 4.5% rate environment, $18,000 locked in a CSP for 30 days costs you roughly $67 in foregone interest. The premium needs to exceed this opportunity cost for the trade to be worth it.

    For NVDA CSPs paying $370/month, the math works out easily ($370 >> $67). For AAPL CSPs paying $170/month, it's still positive but the margin is thinner. This is why high-IV stocks like NVDA and TSLA are more capital-efficient for CSPs — the premium more than compensates for locked capital.

    Start Calculating

    OptionsPilot shows you the exact cash requirement, premium, breakeven, and return for any CSP on any stock. Compare different strikes and expirations to find the sweet spot for your account size.