Cash-Secured Put Calculator
See the premium, the cash to set aside, the effective purchase price if assigned and the return on that cash.
At expiration with the stock at $105.00
+$133.00
Max loss -$9,367.00
At expiration with the stock at $105.00
+$133.00
Max profit
+$133.00
Max loss
-$9,367.00
Break-even
$93.67
Solid green and red: at expirationAmber: day 15, modeledDotted line: current price
- Net credit
- $133.00
- Modeled on day 15 at $105.00
- +$121.22
- Max profit as a share of max loss
- 1.4%
- Premium income
- $133.00
- Cash to set aside
- $9,500.00
- Price paid per share if assigned
- $93.67
- Return on the cash
- 1.40%
- Return on the cash, annualized
- 17.0%
- Delta (shares)
- 24.9
- Gamma
- -3.69
- Theta per day
- +$4.25
- Vega per point
- -$9.09
Modeled profit and loss by stock price and day
| Stock | Day 0 | Day 8 | Day 15 | Day 23 | Expiry |
|---|---|---|---|---|---|
| $110.93 | $122 | $129 | $132 | $133 | $133 |
| $108.20 | $110 | $122 | $130 | $133 | $133 |
| $105.47 | $90 | $109 | $123 | $132 | $133 |
| $102.73 | $55 | $83 | $107 | $129 | $133 |
| $100.00 | $0.00 | $36 | $70 | $113 | $133 |
| $97.27 | -$83 | -$41 | $1.63 | $64 | $133 |
| $94.53 | -$199 | -$157 | -$112 | -$44 | $86 |
| $91.80 | -$351 | -$314 | -$277 | -$226 | -$187 |
| $89.07 | -$539 | -$512 | -$488 | -$463 | -$460 |
How to calculate cash-secured put returns
A cash-secured put sells a put while holding the cash to buy 100 shares at the strike. If the stock stays above the strike at expiration, you keep the premium. If it finishes below, you can be assigned, and your effective purchase price is the strike minus the premium.
The return is the premium divided by the cash you set aside. It looks like income, but the risk is the same as owning the stock from the break-even down, and the loss can be large if the stock falls hard.
Cash to set aside = strike × 100 × contracts. Break-even = strike − premium. Return on cash = premium ÷ strike.
Worked example
You sell the $170 put for $4.00 with 30 days left. You collect $400 and set aside $17,000, a 2.35% return on the cash, or about 28.6% annualized if it could be repeated every 30 days.
If you are assigned, you pay an effective $166 a share. At expiration, a stock at $150 would mean a $1,600 loss, and the maximum loss is $16,600 if the stock goes to zero.
What the result does not account for
- Interest your broker may pay on the set-aside cash.
- Early assignment, which can happen before expiration.
- The chance of assignment, which this calculator does not estimate. A higher premium usually comes with more risk.
Frequently asked questions
What's the difference between a cash-secured put and a naked put?
The option is the same short put. The difference is collateral: a cash-secured put holds the full cost of the shares in cash, while a naked put relies on margin.
Can I combine cash-secured puts with covered calls?
Yes, that sequence is the wheel: sell puts until you are assigned, sell calls on those shares until they are called away, then start over. The wheel strategy calculator follows one full cycle.
Related calculators
- Covered Call CalculatorSee the premium income, adjusted cost, return if the shares are called away and return if the stock goes nowhere.
- Wheel Strategy CalculatorFollow one cycle of selling a put, taking assignment and selling a call, with cost basis at each step and the return on the cash tied up.
- Options Profit CalculatorBuild a trade of up to six legs and see its payoff chart, break-evens, maximum profit and loss, and how time decay changes the result before expiration.
Articles on this topic
This calculator with a ticker loaded
SPYQQQIWMTSLANVDAAAPLAMDMSFTAMZNMETAGOOGLNFLXCOINPLTRSOFIFBACINTCMARADIA
Affiliate disclosure: if you open a broker account through our tastytrade link, we may earn a commission. Compare fees yourself before choosing a broker.