Strategy guide
Cash-secured put profit calculator guide
A cash-secured put collects premium while accepting the obligation to buy shares at the strike if assigned.
Formula focus
Example: sell a 95 put for $2.25. Breakeven is $92.75. If the stock is below the strike at expiration, assignment exposure matters.
Practical limitations
The clean formula assumes a target price at expiration. Real fills, spreads, early assignment, exercise decisions, implied volatility, and time remaining can all change the actual outcome.
Use the calculator
Open the calculator and compare at least three target prices: bearish, base case, and bullish. If one adverse scenario is unacceptable, the trade may be too large or poorly structured.
Primary reading: OIC Profit and Loss Simulator · FINRA options overview · SEC Investor Bulletin on options · OIC options pricing overview