Cash-Secured Put Calculator

A cash-secured put means selling a put option while holding enough cash to buy the shares if you are assigned. This free calculator shows your premium income, your annualized yield on that cash, your effective buy price if assigned, and your breakeven. Educational only, not advice.

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Cash-Secured Put Calculator

See your yield on cash, effective buy price, and downside cushion before you sell the put.

Inputs

$

$

$


Results

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Annualized yield on cash secured
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Premium income
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Effective buy price if assigned
Cash secured (collateral) –
Static yield on cash –
Breakeven price –
Downside cushion –
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Educational only, not financial advice. Options involve risk, including the risk of being assigned shares below the current market price. Figures shown ignore commissions, fees, taxes, and early assignment.
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How to use the cash-secured put calculator

  1. Enter the strike price of the put you plan to sell and the premium per share.
  2. Set the days to expiration and the number of contracts (each secures 100 shares of cash).
  3. Optionally add the current stock price to see your downside cushion.

The formula behind it

  • Cash secured = strike x 100 x contracts
  • Premium income = premium x 100 x contracts
  • Static yield on cash = premium / strike
  • Annualized yield = static yield x 365 / days to expiration
  • Effective buy price and breakeven = strike minus premium

Cash-secured put FAQ

What is a good annualized yield on a cash-secured put?

Many income traders look for roughly 15 to 40 percent annualized on the cash they set aside, but higher yields usually come with higher assignment risk. Compare the yield to how far below the current price your strike sits.

What happens if I get assigned?

If the stock closes below the strike at expiration, you buy 100 shares per contract at the strike price and keep the premium. Your effective buy price is the strike minus the premium collected.

Is a cash-secured put the same as a covered call?

They are two sides of the same wheel. A cash-secured put gets you paid to potentially buy a stock, and a covered call gets you paid to potentially sell it. Many traders run them in sequence.

Educational only, not financial advice.