I'll calculate the IRR for this cash-secured put trade on TQQQ. Let me break down the trade:

Trade Details: - Sell 50 puts TQQQ Sep 18, 2026 $25 strike at $0.20 mid - Expiration: 64 days (Sep 18, 2026) - Underlying: TQQQ at $72.02

First, let me fetch the current price data and then calculate the IRR.No price data is needed — the IRR calculation is purely from the option trade parameters. Here's the math:

---

Cash-Secured Put — TQQQ Sep 18, 2026 $25 Put

Parameter	Value
Action	Sell (short put)
Contracts	50
Strike	$25.00
Premium (mid)	$0.20
Multiplier	100 shares/contract
Days to Expiration	64 (Sep 18, 2026)
Settlement	PM (physical delivery)

---

Capital Requirement

Cash-secured means you set aside the full notional:

$$\text{Capital Reserved} = 50 \times \$25.00 \times 100 = \$125,000$$

---

Premium Collected

$$\text{Premium} = 50 \times \$0.20 \times 100 = \$1,000$$

---

IRR Calculation

This is a simple return over 64 days — you put up $125,000, collect $1,000 upfront, and get your capital back at expiry (assuming the put expires worthless, which is the bull case at $25 strike vs $72.02 spot).

$$\text{Return} = \frac{\$1,000}{\$125,000} = 0.80\% \text{ over 64 days}$$

Annualized:

$$\text{IRR} = (1 + 0.008)^{(365/64)} - 1 = (1.008)^{5.7031} - 1$$

$$\text{IRR} = 4.65\% \text{ annualized}$$

---

Summary

Metric	Value
Capital at Risk	$125,000
Max Profit	$1,000
Return (64 days)	0.80%
IRR (annualized)	4.65%
Breakeven at Expiry	$24.80
Downside Cushion	65.6% (spot $72.02 → $25.00)

This is a deep out-of-the-money put with substantial cushion. The 4.65% annualized IRR reflects the low risk of the $25 strike being breached given TQQQ is trading at $72. The primary risk is a catastrophic decline in the Nasdaq-100 (which TQQQ is 3x leveraged to), not a modest pullback.

With the margin maintenance requirement of 75% for TQQQ, the capital efficiency improves significantly. Let me recalculate:

---

Cash-Secured vs. Margin-Secured Put — TQQQ Sep 18, 2026 $25 Put

---

Scenario 1: Cash-Secured (IRA / No Margin)

Parameter	Value
Capital Reserved	$125,000
Premium Collected	$1,000
Return (64 days)	0.80%
IRR (annualized)	4.65%

---

Scenario 2: Margin-Secured (75% Maintenance)

With 75% margin maintenance on TQQQ, the capital required is:

$$\text{Margin Required} = \$125,000 \times 75\% = \$93,750$$

But the more relevant number is what Schwab actually reserves on day one. For a naked put, Schwab typically uses:

$$\text{Initial Requirement} = \text{Premium} + 20\% \times \text{Underlying} \times \text{Shares} - \text{OTM Amount}$$

$$\text{OTM Amount} = (72.02 - 25.00) \times 5,000 = \$235,100$$

$$\text{Requirement} = 1,000 + (0.20 \times 72.02 \times 5,000) - 235,100$$

$$= 1,000 + 72,020 - 235,100 = -\$162,080 \text{ → floors at } 1,000 + (0.10 \times 25 \times 5,000) = \$13,500$$

With the 75% special maintenance on TQQQ, the more conservative estimate:

$$\text{Capital Tied Up} \approx 75\% \times \$25 \times 5,000 = \$93,750$$

---

Metric	Cash-Secured	Margin-Secured
Capital Required	$125,000	~$93,750
Premium	$1,000	$1,000
Return (64 days)	0.80%	1.07%
IRR (annualized)	4.65%	6.23%
Breakeven	$24.80	$24.80

---

Bottom Line: On margin, the annualized IRR improves from 4.65% to ~6.23% because you're tying up ~25% less capital. The risk remains identical — you still owe delivery of 5,000 shares at $25 if assigned. The 75% maintenance also means you need to watch for a margin call if TQQQ drops sharply, since the requirement is higher than the standard 25% for most equities.

You're right — let me correct this. The standard Reg T / exchange minimum for a naked put is roughly:

$$\text{Margin} = \text{Premium} + \max!\left(20\% \times \text{Underlying} - \text{OTM Amount},\ 10\% \times \text{Strike}\right) \times \text{Shares}$$

But with such a deep OTM put, the 20% of underlying minus the massive OTM cushion goes deeply negative, so it floors at 10% of strike:

$$\text{Floor} = 10\% \times \$25.00 \times 5,000 = \$12,500$$

Plus the premium:

$$\text{Total Initial Margin} = \$12,500 + \$1,000 = \$13,500$$

Now, Schwab's 75% maintenance requirement on TQQQ applies to the stock position if assigned — but for the naked put itself, the exchange minimum governs. Schwab may apply a house requirement on top, but using the exchange formula:

---

Revised Margin-Secured

Parameter	Value
Capital Required	~$13,500
Premium Collected	$1,000
Return (64 days)	7.41%
IRR (annualized)	50.3%

---

Full Comparison

Metric	Cash-Secured	Margin-Secured
Capital Tied Up	$125,000	~$13,500
Premium	$1,000	$1,000
Return (64 days)	0.80%	7.41%
IRR (annualized)	4.65%	50.3%

That's the power of deep OTM puts on margin — tiny capital commitment for the same premium. The trade-off: if TQQQ collapses toward $25, margin requirements will balloon as the OTM cushion shrinks.