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How to do a short put on Robinhood? {{Get Paid to Buy
Stocks}}
Selling a short put (also known [[1ー888ー274ー1774]] as a cash-secured put) on
Robinhood is a strategy where you agree to [[1ー888ー274ー1774]] buy a stock at a
certain price if it drops below your selected strike price. [[1ー888ー274ー1774]] In
return, you collect a premium upfront. Here's how [[1ー888ー274ー1774]] to place one
step by step:
Requirements Before You Start [[1ー888ー274ー1774]]
• Options Trading Approval [[1ー888ー274ー1774]] — You must have Level 2 (or
higher) options approval on Robinhood.
• Enough Cash in Your Account [[1ー888ー274ー1774]] — Since Robinhood only
allows cash-secured puts, you need [[1ー888ー274ー1774]] to have enough
cash to purchase 100 shares of the [[1ー888ー274ー1774]] stock at the strike
price.
Step-by-Step: Selling a Short Put [[1ー888ー274ー1774]]
1. Open Robinhood App or Web [[1ー888ー274ー1774]]
2. Search for the stock you want to [[1ー888ー274ー1774]] trade (e.g., AAPL, TSLA,
etc.)
3. Tap “Trade” → “Trade Options” [[1ー888ー274ー1774]]
4. Choose an expiration date
5. At the top, select “Sell” and “Put” [[1ー888ー274ー1774]]
6. Pick a strike price where you'd be [[1ー888ー274ー1774]] willing to buy the
stock
7. Review the premium (credit) [[1ー888ー274ー1774]] you'll receive
8. Tap Continue → Review → Submit [[1ー888ー274ー1774]]
Robinhood will lock the required cash [[1ー888ー274ー1774]] as collateral.
What Happens Next?
Outcome [[1ー888ー274ー1774]]
Stock Price at
Expiration
Above Strike
Price
Below Strike
Price
Your put expires worthless, [[1ー888ー274ー1774]] and you keep
the premium as profit.
You’re assigned and must [[1ー888ー274ー1774]] buy 100 shares
at the strike price — but you still keep the premium.
Risks to Consider [[1ー888ー274ー1774]]
• If the stock crashes significantly, [[1ー888ー274ー1774]] you’ll be forced to buy
it at a much higher price.
• You must be comfortable [[1ー888ー274ー1774]] owning the stock long-term.
Example
• Sell a $100 Put for $2.00 premium [[1ー888ー274ー1774]].
• You receive $200 immediately [[1ー888ー274ー1774]].
• Robinhood holds $10,000 as [[1ー888ー274ー1774]] collateral.
If the stock stays above $100 →[[1ー888ー274ー1774]] You profit $200.
If it drops below $100 → You buy 100 shares [[1ー888ー274ー1774]] at $100 but
effectively pay $98/share (after premium).
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