Cash-Secured Put Calculator
Know your breakeven before you sell the put.
A cash-secured put calculator shows your effective entry price, premium yield, and assignment outcome so you can compare put trades against simply waiting and buying the shares directly.
Model a Put Trade in the AppHow a Cash-Secured Put Works
You sell a put option and set aside the cash to purchase 100 shares if you are assigned. The buyer pays you a premium for the right to sell you shares at the strike price.
If the stock stays above the strike
- ✓ Option expires worthless
- ✓ You keep the full premium
- ✓ Your cash is released to use again
- ✓ You can sell another put next cycle
If the stock falls below the strike
- → Option is exercised (assigned)
- → You buy 100 shares at the strike price
- → Your effective entry is strike minus premium
- → You now hold shares that may be below market price
Key Metrics to Calculate
Premium Income
Total cash received when you sell the put. Equals premium per share × 100. This is yours to keep regardless of whether assignment occurs.
Effective Entry Price (if assigned)
The real cost basis of your shares if you are assigned. This is below the strike price by the amount of premium you collected.
Premium Yield
The income earned relative to the cash set aside. Annualised, this lets you compare put strategies across different stocks, strikes, and timeframes.
Maximum Loss
The worst case: the stock falls to zero and you are holding worthless shares at the strike price. Maximum loss equals strike minus premium received. This is why stock quality matters.
Example: Cash-Secured Put on XYZ
Example for illustrative purposes only. Always confirm the strike is at or below your fair value estimate before selling.
Set Your Strike Below Fair Value
Wall St Yardie calculates the fair value of the underlying so your put strike is anchored to fundamentals and not just the highest available premium.
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