Cash Secured Puts

What Is a Cash-Secured Put?

A cash-secured put is an options strategy where an investor sells a put option while holding enough cash (or stablecoins) to buy the asset if the option is exercised.

This allows: ✅ Upfront income from the premium ✅ Strategic asset accumulation at a discount ✅ Potential yield stacking when using yield-bearing stablecoins

How It Works

1️⃣ Hold cash/stablecoins as collateral (e.g., 100K USDC) 2️⃣ Sell a put option at a lower strike price 3️⃣ Earn an upfront premium 4️⃣ Two possible outcomes:

• If the asset stays above the strike price → Keep the premium and your stablecoins.

• If the asset price falls below the strike → Buy the asset at the pre-agreed strike price (cheaper than before).

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Example: Token Buyback Using Cash-Secured Puts

Scenario: A treasury wants to buy back $500K worth of its token but only if its price falls by more than 10% in the next 30 days.

• Strike price: 90% of current price

• Premium received: $13,700

🔹 If the token price stays above the strike → Treasury keeps $500K USDC + premium. 🔹 If the price falls below the strike → Treasury buys tokens at the agreed price using the USDC collateral.

Benefits of Cash-Secured Puts

✅ Generate yield on idle stablecoins ✅ Buy assets at a discount ✅ Stack yield with yield-bearing stablecoins

Risks of Cash-Secured Puts

⚠️ Obligation to buy the asset if the price falls below the strike. ⚠️ Stablecoin collateral is locked until expiration.

👉 Who Uses Cash-Secured Puts?

• Treasuries executing cost-efficient token buybacks

• HNWIs & Whales looking to accumulate assets with yield

• Funds & DAOs optimizing capital deployment

MYSO enables on-chain cash-secured put execution, allowing treasuries and funds to earn yield while executing strategic buybacks.