Cash-secured put calculator
Selling a cash-secured put means you get paid now and promise to buy 100 shares at the strike if the stock is below it at expiry. Type in the numbers from your broker and see what the trade really asks of you.
All required. One contract = 100 shares.
- Cash you set aside
- $20,750
- Premium you collect
- $2,002
- Return if it expires above the strike
- 9.6%
- Same, per year (comparison only, not a forecast)
- 168%
- Breakeven price
- $187.48
- How far the stock can fall before the strike
- 2.4%
- If it falls 20% by expiry
- −$1,735
- Worst case (the stock goes to zero)
- −$18,748
The per-year figure is for comparing trades, not what you should expect. The 20% drop is an example, not a forecast.
What the numbers mean
Breakeven is where you start losing money if you are assigned: the strike minus what you were paid.
The worst case is real: if the company fails, you own 100 shares of nothing, minus the premium you kept.
A big premium usually means the market thinks a big move is possible.
DipBell is a publication, the same for every reader. It is not advice on your own account.
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