A cash-secured put is an options strategy where you sell a put option and set aside enough cash to buy 100 shares if assigned. In exchange, you collect a premium upfront. If the stock stays above your strike price at expiration, you keep the premium as pure profit. If it falls below, you're assigned the shares at the strike price — but your effective cost basis is reduced by the premium collected.
Enter your strike price, the premium per share you received, number of contracts, current stock price, and your broker's commission per contract. The calculator instantly shows your break-even price, net cost basis if assigned, and a full scenario table across different expiration prices.
You are obligated to buy 100 shares per contract at the strike price. Your effective cost is reduced by the premium you collected, which is why your break-even is always below the strike price.
Break-even = Strike Price − Net Premium Per Share. For example, if you sell a $50 strike put for $3.50 premium, your break-even is $46.50. As long as the stock stays above that at expiration, you profit.
It depends on the stock price vs your break-even. If the stock is above your break-even price when assigned, you can sell the shares for a profit. If it's below, you're holding shares at an unrealized loss — though you still paid less than the strike price thanks to the premium.
A put is in-the-money (ITM) when the stock price is below the strike price. This means the option has intrinsic value and assignment is likely at expiration unless the stock recovers.
Your maximum profit is always capped at the premium collected. This occurs when the stock closes at or above the strike price at expiration and the option expires worthless.