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OPTIONS STRATEGY

Cash-Secured Put Calculator

Measure cash required, premium income, and the effective share purchase price.

Position inputs

Manual values work without a market-data connection.

Strategy summary

Expiration payoff metrics.

Cash required
$9,500.00
Premium income
$200.00
Effective purchase price
$93.00
Break-even
$93.00
Maximum profit
$200.00
Maximum loss
$9,300.00
Annualized return
25.61%

Methodology

Maximum loss assumes the underlying falls to zero. Annualized return is a simple annualization and not a forecast.

How this calculator works

A cash-secured put sells a put while reserving cash to buy shares if assigned at the strike.

Formula or payoff

Required cash is strike × 100 × contracts; effective purchase price is strike minus premium per share.

Practical example

Selling one $95 put for $2 reserves $9,500 and creates a $93 effective purchase price before fees.

Risk and limitations

The underlying can fall far below the effective purchase price. Assignment and annualized returns are not guaranteed.