To The Moon

When it comes to building consistent cash flow in the market, few strategies are as practical and efficient as selling cash-secured puts. Recently, I executed such a trade on UP Fintech Holding Limited (TIGR), targeting the September 26, 2025 expiration with a strike price of $9.50. The premium received was $0.07 per share, which translates to $7 per contract. At first glance, the dollar amount might appear modest, but when you scale it across time and consider the percentage return, the picture becomes much more attractive.

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The Mechanics of the Trade ⚙️

By selling a cash-secured put, I am essentially agreeing to purchase 100 shares of TIGR at $9.50 if the stock closes below that strike price on expiration day. To secure this obligation, I set aside $950 in buying power. In return, I immediately collected a $7 premium, which is deposited into my account. The trade is completely transparent—if TIGR stays above $9.50, I keep the premium with no further obligation. If it falls below, I get assigned the shares at my chosen price point, effectively buying TIGR at a discount while still keeping the premium earned.

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Calculating the Return 📊

The beauty of this trade lies in the risk-to-reward balance. By committing $950 in collateral, I earned $7 for a 28-day duration. This translates to a 0.74% return for less than a month, or almost 0.8% on a cash-secured basis. Annualized, this compounds to a potential 8–9% return, provided I continue executing similar trades each month. Compared to holding TIGR shares outright and hoping for capital gains, this strategy provides a steady income stream regardless of minor market fluctuations.

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Why TIGR? 🐯

UP Fintech Holding (better known as Tiger Brokers) has carved a niche in online brokerage services, especially for global investors looking into Chinese and U.S. markets. Its trading app, competitive fees, and expanding customer base make it an appealing stock to accumulate. However, like many fintech names, TIGR tends to be volatile. By selling puts, I am not only lowering my effective cost basis but also getting paid to wait for a potential entry. If TIGR rallies above $9.50, I simply pocket the premium. If it dips, I acquire shares at a more favorable adjusted cost of $9.43 ($9.50 strike minus $0.07 premium).

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The Risk-Reward Balance ⚖️

Of course, the main risk is that TIGR could fall significantly below $9.50, leaving me with shares worth less than my purchase price. But because this is a stock I am willing to hold long term, the downside aligns with my investing thesis. Unlike naked puts, the cash-secured nature ensures there is no margin risk—I have already allocated the full $950 to cover assignment. This approach keeps leverage under control while still generating steady yield.

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Final Thoughts 🌟

Selling cash-secured puts on TIGR is not about chasing huge overnight profits; it’s about building predictable, repeatable returns. A nearly 0.8% return in just 28 days is highly attractive, especially when compounded across multiple cycles. Whether the option expires worthless or I get assigned, I end up in a favorable position—either pocketing cash flow or acquiring TIGR shares at a discount. For disciplined investors, this method provides a simple, consistent way to generate income while keeping risk manageable

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