Selling deep ITM puts vs buying shares in margin account
u/After_Kale_3602 ·
Reddit — r/options
· February 22, 2026 at 00:51
· ⬆ 17 pts
· 💬 38 comments
| View on Reddit ↗
No analysis available.
Score17
Comments38
Upvote %78%
▶ Full Post Text
I have a margin account that charges me 6.5% annual interest.
I want to buy 1000 shares of MSFT. Instead of spending $397k today and paying monthly interest of $2,140. I want to write a June $450 put and collect $58k premium. For one I don’t have to pay interest for 4 months, secondly if stock moved up in next 4 months I have locked in today’s price.
I understand that if stock moves down I take the downside (but that similar to owning a stock) and I am ok if I get assigned in June or before that. I will also lose out on a $0.90 dividend but I am saving lot more.
What am I missing here? Am I thinking about this wrong?