Cash-Secured Put Calculator
Calculate income from selling cash-secured puts. Collect premium while waiting to buy stocks at your target price.
Cash-Secured Put Details
Cash required: $4,700 (held as collateral if assigned)
PREMIUM COLLECTED
31.1% annualized on cash deployed
WHAT HAPPENS AT EXPIRY
Stock ≥ $47.00 (not assigned)
Keep $120 premium free and clear. Return: 2.55% in 30 days.
Stock < $47.00 (assigned)
Buy 100 shares at $47.00, net cost $45.80/share after premium.
Stock < $45.80 (net loss)
Your cost basis of $45.80 is exceeded. Still 8.4% below today's price.
Frequently Asked Questions
What is a cash-secured put?
You sell a put option and set aside cash to buy the stock at the strike price if assigned. You collect premium upfront; if the stock stays above strike, you keep the premium. If it falls below, you buy at strike minus premium.
What is the wheel strategy?
The wheel: sell cash-secured puts until assigned, then sell covered calls until called away, then repeat. It generates consistent income but works best on stocks you would genuinely want to own.
What is the effective buy price with a cash-secured put?
Effective cost basis = Strike price - Premium received. Selling a $50 put for $2.00 premium means your effective cost if assigned = $48/share.
Related Calculators
For educational purposes only. Not financial advice. Consult a qualified advisor before making investment decisions.