Cash Secured Put Calculator

A cash-secured put is a short put backed by cash to buy stock at the strike if assigned; you collect premium for a potential effective discount to your entry.

Trade Details

Stock Symbol

Current Stock Price ($)

Strike Price ($)

Premium Received per Share ($)

Number of Contracts

Trade Summary

Cash Required—

Effective Purchase Price—

Enter option details to see payoff diagram

Return on Cash

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Premium Received

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Breakeven

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Discount to Current

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Commonly asked Cash Secured Put questions

What does cash secured mean?

You keep enough cash (or margin rules permitting) to buy the stock at the strike if assigned—same short-put payoff as naked put, but funded for assignment.

What is effective purchase price?

If assigned, your net buy price is often viewed as strike minus premium received per share, before fees.

What is the wheel strategy?

A common flow: sell cash-secured puts until assigned, then own stock and sell covered calls—repeat. Risk and tax consequences still apply.

How much capital is required?

Often strike × 100 × contracts in cash-secured accounts; margin accounts may differ by broker rules.

What is the downside?

If the stock drops a lot, you may own it at a loss versus spot; max loss on the put side is often (strike − premium) × contracts × 100 if stock went to zero.