TD Ameritrade has the "Covered Call" (CC) options strategy, but the very similar "Cash-Secured Put" (CSP) is missing in the same pick list on the order page (web). Anybody know whether CSP is possible at all at TDA? Or is it perhaps possible only via their TOS platform or via API ? I just asked their support too, but maybe someone here can answer faster. Thx.
If you can sell a put, which you should if you can do covered calls, and have enough cash to cover underlying excercise... What else do you need?
What do you mean by this? Does your account allow it? But since it's "Cash Secured" then it should be allowed by default for all account types, IMO.
It's about the "combination order" named "Cash-Secured Put", ie. it locks "Strike - Premium" amount of cash in the account for the lifetime of that ShortPut trade, and releases it then if there was no assignment...
Just got this reply from the TDA support: I haven't tried it yet, but I'm afraid doing it via the "Custom" selection will require to have an initial cash amount equal to the full Strike of the option, not the more correct reduced amount of "Strike - Premium". With "Covered Call" the required cash is "StockPrice - Premium". It's similar for "Cash Secured Put": "Strike - Premium", but some brokers don't know and require instead the full Strike amount. That's simply wrong b/c the max possible risk ever is just "Strike - Premium".
You might want to think about installing TOS and getting comfortable using that platform. I think TDA is being phased out.
I just tried the TOS-Web version, but it too has no mention of "Cash-Secured Put". It seems to have not even the said "Custom" selection of the TDA web, if I'm not mistaken.