4 outcomes of cash secured puts: Option expires OTM: Keep the premium. Collateral is freed to use. Option gets assigned ITM: Keep the premium. Collateral is used to purchase the underlying stock shares at strike price. You are okay or intented to own the underlying stock, hoping that it will rebounce above the strike price. Rollover: Buy-to-close on an option that’s already ITM, and sell an option that’s in the future, OTM.
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