Cash-Secured Puts vs Covered Calls – Which Strategy Is Better for Income?

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If you’re an investor looking to generate reliable income, you’ve probably heard of two popular strategies: cash-secured puts (CSPs) and covered calls. But which one truly gives you the edge?

In this article, income expert Mark Yegge breaks down both strategies, head-to-head. While each has its place in your financial toolkit, Mark explains why covered calls typically win—especially if you’re serious about monthly income and capital efficiency.

Quick Definitions

Cash-Secured Put (CSP):
You sell a put option and set aside enough cash to buy the stock if assigned.
Covered Call:
You already own the stock (or a synthetic version) and sell a call option against it for income.

Both generate premium upfront—but how they behave under pressure, and how much capital they require, is quite different.

Head-to-Head Comparison: Covered Calls vs CSPs

Control & Mindset

CSPs: You’re hoping not to get assigned—feels like being forced into a stock when it drops.
Covered Calls: You already own the stock and are in full control. You're generating income on your terms.

💬 “Covered calls give you psychological and strategic control. With CSPs, you're stuck waiting.”

Capital Efficiency

CSPs: Require tying up cash, which might earn low interest.
Covered Calls (with synthetics): Use less capital while still generating high income—great for scaling.

“Covered calls give you more flexibility and more ROI per dollar.”

Income Comparison

Using an example from Apple (AAPL):

Covered Call (In-the-money): Earns $359 in extrinsic value.
Cash-Secured Put: Earns only $285 in extrinsic value.

That’s 1.5% vs 1.0%—a 50% income edge using covered calls.

Downside Risk

Both strategies carry downside risk if the stock falls.
But covered calls can lower your cost basis and be rolled or adjusted more easily than CSPs.

When CSPs Do Make Sense

Want to buy a stock at a lower price? CSPs are a great entry strategy.
But don’t assume they’re “safer”—they just work differently and scale poorly without lots of capital.

Verdict: Covered Calls for the Win

If your goals are:

Monthly income
Capital efficiency
Strategic flexibility

Then covered calls win, especially when used with synthetic stock (like deep in-the-money calls).

💬 “Want to make income even if the stock moves sideways? Covered calls are your best friend.”

Life-Improving Tips: Turn Your Portfolio into a Cash Flow Machine

Stop Letting Your Stocks Sit Idle
Your portfolio can pay you weekly—if you learn how to sell options for income.
Choose Control Over Hope
Covered calls let you manage outcomes. CSPs leave you hoping not to get assigned.
Make Income Whether Stocks Rise or Stay Flat
Covered calls profit even if stocks stall. That’s a major advantage.
Boost ROI with Less Capital
Use deep-in-the-money calls (synthetic stock) to control stock with less cash.
Use the Juice Calculator
Always measure extrinsic value—Mark’s term for the true income in every option trade.

Frequently Asked Questions (FAQs)

Q1: Are cash-secured puts safer than covered calls?
A: No. Both have similar risk profiles. The myth of CSPs being “safer” comes from misunderstandings about assignment and capital usage.

Q2: Can I use covered calls in my retirement account?
A: Yes. Covered calls are allowed in many IRAs and Roth IRAs. Just check your broker’s approval requirements.

Q3: What is a “synthetic” covered call?
A: Instead of buying 100 shares of stock, you buy a deep-in-the-money LEAPS call (acts like stock) and sell short-term calls against it.

Q4: How much capital do I need?
A: You can start with as little as enough to buy 100 shares, or less if using synthetics. Mark’s methods scale to your account size.

Q5: Can I lose money using covered calls?
A: Yes—especially if the stock drops sharply. That’s why stock selection and proper strike management are critical.

Call to Action: Ready to Build Your Own Income Machine?

Mark Yegge doesn’t just teach theory—he trades this strategy every week. If you're ready to stop gambling and start engineering your income, here’s how to get started:

Join the Cash Flow Machine Elite Course

Master covered calls, synthetics, strike selection, rolling, and risk management.

Attend Wealth Accelerator Live (Sept 26–28, 2025)

Spend 3 days in Clearwater, Florida building your trading plan, learning from real traders, and gaining access to powerful tools.
Limited spots available. Secure yours now.

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Conclusion

Both cash-secured puts and covered calls are proven ways to generate income. But if you're looking for more control, scalability, and steady cash flow, covered calls are hard to beat.

✅ Learn the system
✅ Sell the juice
✅ Build a monthly income stream

Hope is not a strategy. Income is.
Start engineering yours—one trade at a time.

Cash-Secured Puts vs Covered Calls – Which Strategy Is Better for Income?

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