# How do Cash-Secured Puts work?

A Cash Secured put is a simple and powerful tool at your disposal.

* You hold stable coins equal to the potential purchase price (strike × quantity) of a crypto asset like HYPE or WBTC
* You sell a put option: the right (although, not an obligation) for someone else to sell you their asset at a chosen price (strike) in the future.
* For selling that right, you earn an upfront premium (yield), regardless of the option being exercised or not. This is applied to your required collateral for selling the Cash Secured Put.
* If the asset stays above the strike price, you keep both the premium and your cash
* If the price falls below the strike price, you buy the asset at the strike price using your secured cash, but you still keep the premium which reduces your effective purchase price.

***

#### Example: Selling a Cash-Secured Put with a $100 Strike Price

| Scenario            | Price at Expiry | What Happens                        | What You Earn                                  |
| ------------------- | --------------- | ----------------------------------- | ---------------------------------------------- |
| Below Strike price  | $95             | Buy asset at $100 with secured cash | Premium (reduces cost basis to $100 - premium) |
| At the strike price | $100            | Keep asset + premium                | Premium                                        |
| Above strike price  | $110            | Keep cash + premium                 | Premium                                        |


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.hypersurface.io/overview/how-do-cash-secured-puts-work.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.