Cash Secured Put Calculator Guide

Calculate your potential returns before selling cash secured puts.

Key Metrics

1. Premium Income

Total premium received for selling the put.

Formula: Premium = Option Price × 100

2. Cash Required

Capital needed to secure the put.

Formula: Cash Required = Strike Price × 100

3. Return on Capital

Percentage return on cash committed.

Formula: Return = (Premium / Cash Required) × 100

4. Annualized Return

Return projected over a full year.

Formula: Annualized = Return × (365 / Days to Expiration)

5. Break-Even Price

Stock price where you start losing money if assigned.

Formula: Break-Even = Strike Price - Premium

Example Calculation

NVDA Cash Secured Put:

  • Stock Price: $135
  • Strike Price: $125
  • Premium: $4.20
  • Days to Expiration: 30

    • Results:

  • Premium Income: $420
  • Cash Required: $12,500
  • Return: 3.36%
  • Annualized Return: 40.9%
  • Break-Even if Assigned: $120.80

    • Try our free cash secured put calculator for instant analysis.