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Cash-Secured Put Calculator

Enter a put you're thinking of selling. See what it pays, what it ties up, where you break even, and how likely it is to expire worthless.

Free, no sign-up. Bookmark this page to come back to it.

Your trade (example numbers; replace them with yours)
Premium collected
$85.00
1 contract × 100 shares
Return on cash secured
1.79%
Annualized 21.8% if repeated (simple)
Cash to secure the put
$4,750
Strike × 100 per contract
Breakeven at expiration
$46.65
6.7% below the stock price
Strike vs stock price
5.0% below
Out of the money
If the stock went to $0
−$4,665
Worst case: breakeven × 100 per contract
Chance it expires worthless
73%
Model estimate: you keep the premium, no shares
Chance of profit at expiry
79%
Model estimate: stock above breakeven

If you're assigned: you buy 100 shares at $47.50, but the premium makes your real cost $46.65 a share. That's where the wheel strategy sells a covered call next.

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How the numbers are worked out

Return on cash secured is the premium divided by the strike, because the strike × 100 is the cash your broker sets aside for each contract. The annualized figure multiplies that by 365 ÷ days to expiration. It is simple, not compounded, and assumes you could repeat the same trade back to back.

Breakeven is the strike minus the premium. If you're assigned, that's your real cost per share.

The chances come from the Black-Scholes model at the implied volatility you enter: the chance the stock finishes above the strike (the put expires worthless) and above breakeven (the trade makes money at expiration). They are model estimates. Real prices jump on news and earnings in ways the model doesn't capture.

Questions

What is a cash-secured put?
You sell a put option and keep enough cash to buy the shares at the strike. You're paid the premium up front. If the stock stays above the strike, the put expires and you keep the premium. If it closes below, you're usually assigned and buy 100 shares per contract at the strike.
Where do I find the premium and implied volatility?
On your broker's option chain for that stock and expiration. Use the midpoint between the bid and ask, or the price you expect to be filled at. Implied volatility is usually a column on the same chain.
Why is my return different from my broker's?
Some brokers measure return against the cash minus the premium received, or include fees. This calculator divides the premium by the full cash secured, which is the more conservative of the common methods.
What happens after assignment?
You own the shares at a cost of strike minus premium. Many option sellers then sell a covered call on those shares. That's the wheel strategy, and the wheel calculator works through both steps.

More free calculators

Credit spread calculator →Wheel strategy calculator →
⚠These calculators use only the numbers you enter; no market data is looked up. Probabilities are estimates from the Black-Scholes model at the implied volatility you enter, and real prices often move differently. Results ignore commissions, fees, dividends, taxes and early assignment. SPREADVECTOR is an educational screening tool only. Results are not financial advice, investment recommendations, or solicitations to trade. Options trading involves substantial risk of loss and is not suitable for all investors. Past screening results do not predict future performance. You are solely responsible for your own trading decisions. Consult a licensed financial advisor before trading.

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