I started selling puts and spreads last year with my liquidated account, it was at 35k and I locked that in as what I want my options capital pool to be at.
What I did all last year was keep that 35k as cash, Sell a put or spread, immediately buy SGOV with the premium received, sell SGOV when I need to BTC, profit goes to my core long term hold tickers. I did really well, 45% return in 2025.
This year I took that 35k and bought SGOV, increased margin and now my SGOV is my collateral. I only open trades to a max of 35k collateral so I have the funds to cover max loss on everything in SGOV. This seems like I'm borrowing but my cash balance is positive so I don't think I'll be charged interest and I'll actually make a little over $100 a month from SGOV which I was missing out on before.
Am I missing something something here? I understand the inherent risks of my strategy but I'm only asking about the use of margin. Setting my borrowing limit to like 100k is scary but I don't think there is any way to actually borrow that much in my current system.