One of the most valuable skills for option sellers is developing a systematic approach to tracking trades. When you sell a cash-secured put, you're not just collecting premium—you're making a commitment that requires precise cost basis tracking, collateral management, and position monitoring.
This guide walks through a real trade on Marvel Technology Group (MRVL), demonstrating exactly how to enter and track a cash-secured put transaction using proper portfolio management techniques. You'll see the complete workflow from order execution in thinkorswim to position tracking in a dedicated cost basis system.
This systematic approach ensures you always know your exact collateral requirements, true cost basis, and overall portfolio status—critical information for making informed decisions about rolling positions, accepting assignment, or adding new trades.
The trade in question involved selling a cash-secured put on MRVL with specific parameters that demonstrate typical weekly income generation strategies. Here's what the order looked like when it filled in the paper trading account:
The order took approximately 28 minutes to fill after market open, which is typical for limit orders placed at specific premium targets. While the gross premium was $99, the net premium after fees was approximately $98.33. For demonstration purposes in the tracking system, the gross premium amount is used to simplify calculations.
When you sell a cash-secured put, you must maintain sufficient collateral to purchase the shares if assigned. For this MRVL trade:
This collateral must remain in your account throughout the life of the position. You cannot use it for other trades, which is why tracking total collateral across all positions becomes crucial as you scale your options income strategy.
Proper tracking transforms option selling from guesswork into a systematic business. Here's the step-by-step workflow demonstrated for entering this MRVL cash-secured put into a dedicated tracking system:
After the trade fills in your brokerage account, immediately move to your tracking system. Select the appropriate ticker symbol (MRVL in this case) and access the position entry interface. Starting with a clean slate for January means all premium and position metrics begin at zero—a fresh start for the new year.
The position entry form requires specific information that matches your brokerage fill:
Accuracy at this stage is critical. Double-check every field against your brokerage confirmation before saving. A single incorrect digit can throw off your entire cost basis calculation, making future decisions based on faulty data.
After entering the details, save the position to your tracking system. At this point, the system updates several key metrics:
Important Note: At this stage, the position is saved but the premium hasn't been added to your transaction history yet. This allows you to verify the position details without affecting your performance metrics. You can click save multiple times—it won't duplicate transactions or mess up your numbers.
When you save the position, the system generates a "proposed record" containing all the transaction details. This proposed record serves multiple purposes:
The beauty of this workflow is flexibility. If you realize you entered $98 instead of $99, you can correct the position entry, click save again, and generate a new proposed record with the correct premium amount. The system doesn't commit anything to your permanent transaction history until you explicitly move the proposed record forward.
The final step is moving the proposed transaction into your permanent transaction history. This action triggers several important updates:
Once you navigate away from the ticker page, the proposed records disappear—they're temporary by design. Your permanent record lives in the transaction history, which persists and provides the foundation for all your cost basis calculations moving forward.
After completing the entry workflow, your portfolio dashboard transforms from empty to actively tracking. Here's what updates across different views:
One of the most motivating aspects of systematic option selling is watching monthly premiums accumulate. Once this first transaction is recorded, your January premium tracking begins. You'll see the $99 credited to January's total, establishing the baseline for the month's income generation.
As you add more positions throughout the month—additional puts, covered calls, or rolled positions—each premium adds to the monthly total. This creates a clear picture of your income generation trends over time.
The system automatically organizes positions by type, making it easy to see at a glance:
For this MRVL example, the single put appears under the "Puts" category with an active count of 1. As the wheel strategy progresses and assignment occurs, this position will migrate to the stock positions category, and new positions will be added for covered calls.
After entering the position and allowing some time to pass, it's important to understand what the current status means for your potential outcomes. In the brokerage account view, several indicators tell the story:
When the position shows "ITM" (in-the-money), it means the stock price has moved below your strike price. For this $37 strike put on MRVL, if the stock trades below $37, the put is in-the-money. This designation indicates higher probability of assignment at expiration.
Understanding P&L Since Open: If your brokerage shows a negative P&L like -$46.50, it doesn't mean you've lost money. It means if you tried to buy back the put right now, it would cost you $147 (versus the $99 you collected), resulting in a net loss of approximately $47. However, if you let the position expire as planned, you either keep the full $99 (if price rises above $37) or accept assignment and continue the wheel strategy.
With only three days until expiration, time decay (theta) works rapidly in your favor as a put seller. Each day that passes erodes the extrinsic value of the option, moving you closer to keeping the full premium—even if the position is currently in-the-money.
As expiration Friday approaches, three scenarios exist:
Understanding these scenarios before entering the trade ensures you're comfortable with all potential outcomes. The key principle of cash-secured puts is accepting assignment as a positive outcome—you're buying shares at a discount (strike price minus premium) while generating immediate income.
This cash-secured put represents just the beginning of a complete wheel strategy cycle. Depending on what happens at expiration, your next actions follow a systematic path:
Assignment triggers the next phase of the wheel:
This creates bilateral income generation—collecting premium above your position (covered call) and below your position (cash-secured put) simultaneously.
If MRVL stays above $37 and the put expires worthless:
Many option sellers find this continuous weekly income generation particularly satisfying. Each Friday, positions expire and new positions open for the following week, creating consistent cash flow regardless of stock direction.
As you become comfortable with the workflow, scaling your strategy involves:
Proper tracking becomes exponentially more important as position count increases. What's manageable for one or two positions becomes chaotic with five or ten active positions without systematic tracking.
The difference between profitable consistency and frustrating confusion in option selling often comes down to one factor: tracking discipline. When you maintain systematic records of every position, several benefits compound over time:
Your brokerage tracks cost basis for tax purposes, but it doesn't track cost basis the way option sellers think about it. When you've sold three puts, got assigned twice, sold five covered calls, and collected two dividend payments on the same ticker symbol, your true cost basis requires specific calculations that most brokerages don't provide.
A dedicated tracking system calculates true cost basis by incorporating:
Before placing a new trade, you need to know:
Without systematic tracking, answering these questions requires manual calculation across multiple brokerage screens. With proper tracking, you see the answers instantly in your dashboard.
Over time, tracking data reveals patterns that improve decision-making:
This historical data transforms your option selling from reactive to strategic, allowing you to refine your approach based on actual results rather than guesswork.
Following this complete workflow from trade execution to position tracking provides a template you can replicate for every option selling trade:
Essential Workflow Steps:
This systematic approach ensures you never lose track of where you stand. You'll always know your true cost basis, available collateral, and exact premium collected—critical information for making confident trading decisions.
The MRVL example demonstrates how even a simple single-contract trade requires attention to detail across multiple systems. As you scale to multiple positions, the discipline established with single trades becomes the foundation for managing larger, more complex option selling portfolios.
Most importantly, systematic tracking removes emotion from the equation. When you know exactly where you stand financially at all times, you make decisions based on data rather than fear or greed. This objectivity is the hallmark of successful long-term option selling.
MyATMM is purpose-built for exactly this workflow—tracking cash-secured puts, covered calls, and the wheel strategy with precision and simplicity. The platform handles all the complex cost basis calculations automatically while presenting your data in clear, actionable formats.
Key features that support systematic option selling:
The platform's proposed transaction workflow (demonstrated in the MRVL example) gives you safety and flexibility—review details before committing, make corrections without errors, and maintain perfect accuracy even when managing dozens of active positions.
Whether you're selling your first cash-secured put or managing a sophisticated multi-ticker wheel strategy, MyATMM provides the tracking foundation that transforms option selling from hobby to systematic income generation.
Options trading involves substantial risk and is not suitable for all investors. Cash-secured puts obligate you to purchase shares at the strike price, which could result in losses if the stock declines significantly. Past performance does not guarantee future results. This content is for educational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making investment decisions. Ensure you understand the risks and obligations of selling cash-secured puts before engaging in these strategies.
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