Cash-Secured Put Calculator
Measure the payoff of a cash-secured put by comparing collected premium with the cash required to accept assignment. This is useful when evaluating entry prices for stocks you would be willing to own.
Premium income$120.00
Cash secured$4,000.00
Breakeven$38.80
Return on secured cash3.00%
Max loss if stock → $0$3,880.00
How this tool works
Breakeven = strike − premium. Maximum profit = premium × 100 × contracts. Secured cash = strike × 100 × contracts.
Example
Selling one $40 put for $1.20 collects $120, secures $4,000 of cash and creates a $38.80 effective breakeven.
Common questions
What is the maximum loss?
If the stock fell to zero, the loss is approximately strike minus premium per share, multiplied by 100 shares per contract.
Is assignment included?
The calculator assumes you are willing and able to accept assignment at the strike.