When Should You Close a Cash-Secured Put Early?
Monday, September 21, 2026 · Johnny Hopkins
During their recent episode of the Value Options Letter and Acquirers Podcast, Travis and Carlisle discussed When Should You Close a Cash-Secured Put Early? Here’s an excerpt from the episode:
So it’s important to know when to get into a trade, but also when to leave. So there’s a variety of reasons. One reason to exit is maybe you’re wrong on your trade.
Maybe the thesis changed, and you want to limit your losses. That’s one valid reason. Another valid reason is you’ve made most of the profit.
The capital that’s tied up in the trade is too much relative to the remaining profit. And so for capital efficiency purposes, it makes sense to close it out, free up that capital that allows you to set new trades. And so that’s kind of what we saw on these ones.
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