How to Sell Cash-Secured Puts During a Pullback (While Everyone Else Panics)

by Peter Pru aka Peter Prusinowski

Let me hit you with the truth…

When the market drops, most people get scared.

They run to cash. They “wait it out.” They watch helplessly as inflation eats their savings alive.

But a pullback is exactly when I lean in.

Because if you know how to sell cash-secured puts, you can:

• Get paid to buy stocks at a discount
• Lock in juicy premiums while volatility is high
• Start your wealth-building journey when everyone else is frozen

This is how we stack cash flow inside Option Sellers School — and this post will show you how to do it too.

What’s a Cash-Secured Put Again?

It’s simple:

You pick a stock you want to own.

You sell a put option at a lower price (strike).

You get paid upfront for agreeing to buy it if it drops to that price.

You’re like a landlord getting paid just to be willing to buy the house.

If the stock stays above your strike?

You keep the premium.

If it drops?

You buy the stock at the price you wanted anyway — plus you still keep the premium.

It’s a win-win — if you know how to play it right.

Why Pullbacks Are the Sweet Spot for CSPs

Most people sell puts when the market is calm. That’s fine — but premiums are weak.

During a pullback, though?

📈 Volatility spikes

💰 Premiums get fat

🔥 Stocks get oversold

That’s when the real cash flow players step in.

Let me show you how I pick my CSP setups when the market bleeds.

Step 1: Don’t Just Pick “Cheap” Stocks — Pick Durable Ones

I don’t sell puts on garbage just because it’s red.

I target:

• Stocks with real cash flow (dividend or FCF)
• Businesses I’d actually want to own long term
• Stocks with clear support zones on weekly charts

If I get assigned, I’m not stuck — I’m starting my next covered call cycle.

Example tickers I like during pullbacks:

• $WBA
• $INTC
• $SOFI
• $F
• $KO

Step 2: Use Technicals to Pick Your Strike Like a Sniper

Let’s say $SOFI is trading at $15 during a market pullback.

Everyone’s scared.

I’ll look to:

• Sell the $10 put
• Target 1–2 weeks out
• Collect $0.25–$0.35 premium

That’s monthly income on cash just to maybe buy a stock I already want.

The key is:

• Use RSI under 30 (oversold)
• Look for high volume panic candles (capitulation)
• Layer in puts at multi-month support levels

That’s how I create controlled exposure — not blind risk.

Step 3: Only Sell Puts You’re Willing to Be Assigned On

This is not a casino bet.

If I sell the $10 put, I must be fully okay owning 100 shares at $10.

That means I have $1000 cash set aside, ready to deploy.

No margin. No hoping.

Cash. Secured.

If I’m assigned, great — now I own it at $6 and can sell covered calls next.

If I’m not?

I keep the premium.

And I’ll do it again next week.

The Rookie Mistake: Selling Too Close to the Money

Most people try to sell puts at-the-money for bigger premium.

But during a pullback, that’s where the knife is falling.

Go further out.

If you’re nervous, sell the 10–15 delta strike.

Stack wins.

Keep your cost basis low.

This is how you build wealth with discipline, not gambling.

Final Word: Don’t Let Fear Keep You Broke

Everyone talks about “buying the dip.”

But the real players get paid to wait for the dip.

Cash-secured puts give you control.

✅ You decide the price

✅ You collect income while you wait

✅ You never chase hype

It’s boring. It’s consistent. And it works.

Especially during chaos.

Let the media talk about trade wars, rate cuts, or whoever’s running for president.

I’m stacking premium, lowering cost basis, and building a position the old-school way.

Get in. Get cash. Get control.

-Peter Pru aka Peter Prusinowski