Huh? The strategy employed by @marcus335 and me for many many many moons. I believe @pastora does that too. Normally we call that cash secured puts Anyhoo, I don’t have cash, I secured using equities. Because I have no intention of buying the stocks, I always short put with strike price below current market price i.e. DITM e.g. short MRNA put ($130) instead of ATM then i.e. $150. I just want to be prudent, lesser profit but less chance to get assigned.
For cash only and no equities account or insufficient equity.
Say you hold $1M worth of GOOG + some cash. You can buy on margin $1M as the “cash” to secure short put. Ofc is too risky, I use 15% as norm ie. $150k as “cash” to secure the short put. So long the worth of GOOG is enough to secure the short put, the cash is free (you can withdraw them if you want).
Since I am using ToS and Fidelity, both platform shows how much margin is available for trading
Using equity instead of cash to secure short put is risky in a bear market, more risky for put of similar equity because decrease worth of equity means decrease margin for trading.
All option accounts are margin account. I use Fidelity too. My approval level for option is level 5 - max level I think your is level 2 You need level 4 to be able to short put vs equities, and level 5 for short put vs index.