Cash Secured Put Calculator
Selling a cash-secured put means getting paid to promise to buy a stock at your chosen price. Either the option expires and you keep the premium, or you buy shares at a discount to today’s price.
Max Profit
$110.00
premium collected
Breakeven
$43.90
effective purchase price if assigned
Cash Required
$4,500
Return on Capital
2.44%
Annualized Return
29.7%
Profit / Loss at Expiration
Assumptions & limitations
- Premiums are quoted per share; one contract secures 100 shares of cash (Strike × 100).
- P&L is at expiration only — early assignment, commissions, and taxes are not modeled.
- Annualized return extrapolates this single trade over a year and is not guaranteed.
Cash-secured put returns
Return on Capital = Premium / Strike Breakeven = Strike − PremiumThe cash securing the trade is Strike × 100 per contract. Annualizing multiplies the period return by 365/days.
How It Works
- 1You set aside enough cash to buy 100 shares per contract at the strike.
- 2If the stock stays above the strike, the put expires worthless and you keep the premium.
- 3If it falls below, you buy shares at the strike — but your real cost is the strike minus the premium.
Frequently Asked Questions
Is this safer than buying stock?
Marginally — the premium gives a small buffer. But if the stock collapses you still own it from the strike. Only sell puts on stocks you genuinely want to own.
What if I get assigned?
You buy 100 shares per contract at the strike. Many income traders then sell covered calls against them — that’s the Wheel strategy.
What annualized return is realistic?
On quality large-caps at ~30-delta strikes, sellers typically earn 8–20% annualized — higher during elevated volatility.
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