Cash-Secured Put Calculator
Return on collateral, annualized yield, buy price if assigned.
Not financial advice. All results are estimates based on the prices you enter. This tool does not use real-time market data: check live quotes with your broker before you trade.
Annualized return on collateral
OTM put19.2%
- Premium collected
- $150
- Effective buy price
- $93.50
- Cushion to strike
- 5.0%
$1.50 × 100 shares
if assigned
drop before assignment
You set aside $9,500 and collect $150 now: 1.58% in 30 days, 19.2% annualized. If the stock stays above $95.00, you keep the cash and the premium. If it falls below, you buy the shares at an effective $93.50, 6.50% below today.
Try a what-if
What happens at expiration
- Down 15% ($85.00)
- −$850
- Down 10% ($90.00)
- −$350
- At the strike ($95.00)
- $150
- Flat ($100.00)
- $150
- Up 5% ($105.00)
- $150
Not financial advice. Money Scale is not a broker, investment adviser or tax professional, and nothing here is a recommendation to buy or sell any security or option. These calculators are for education.
Estimates only. Every figure is a hypothetical estimate built from the numbers you type in. Results ignore taxes, bid-ask spreads, early assignment, margin requirements and anything else you don't enter. Annualized returns assume a trade could be repeated all year, which is not guaranteed. Past or hypothetical results don't predict future returns.
No real-time market data. These tools don't pull live stock or option prices. Quotes change constantly, so confirm current prices, premiums and fees with your broker.
Options involve risk and aren't suitable for every investor: a covered call or cash-secured put can still lose most of the stock's value. Read the OCC's Characteristics and Risks of Standardized Options before trading options.
Your numbers
$100.00
The price you agree to buy at if assigned. The cash you set aside is strike × 100 per contract.
$95.00 strike
30 days
Contracts, fees & cash interest1 contract · $0.00 fee · 0.0% on cash
1 contract (100 shares)
$0.00
Many brokers pay money-market or T-bill yield on cash held against a put. Leave at 0% if yours doesn't.
0.0% a year
Next steps
A cash-secured put calculator shows what you earn by selling a put while holding enough cash to buy the shares if you're assigned. Enter the stock price, strike, premium and days to expiration to see the cash you need, your return on that collateral, the annualized yield, and the effective price you'd pay for the shares if the put is assigned. Add the interest your broker pays on the cash to see the full yield, premium plus interest.
How this calculator works
- Enter the stock's current price and the put's strike: the price you'd agree to buy at.
- Enter the premium per share (the bid) and the days to expiration.
- Open 'Contracts, fees & cash interest' to add contracts, commissions, and any interest your broker pays on the cash collateral.
- Read the annualized return on collateral, then check the effective buy price. Only sell the put if you'd be glad to own the stock at that price.
- Use the scenario table to see your profit or loss if the stock drops 10% or 15% by expiration.
collateral = strike × 100 × contracts
return = (premium − fees) ÷ strike
annualized = return × 365 ÷ days
effective buy price = strike − premiumThe return is measured on the cash you set aside, not on the stock price, because the cash is the capital at risk. If the put is assigned you buy at the strike, but the premium you kept lowers your real cost to strike − premium. Interest on the collateral, if your broker pays it, is added on top: collateral × yield × days ÷ 365.
- strike
- The price you'd pay per share if assigned
- premium
- Put premium received per share
- days
- Calendar days until the option expires
- fees
- Commission per share (per-contract fee ÷ 100)
Frequently asked questions
How do you calculate the return on a cash-secured put?
Divide the premium by the strike price. That's your return on the cash you set aside. Sell a $95 put for $1.50 and you earn $150 on $9,500 of collateral: 1.58%. Over 30 days that's 1.58% × 365 ÷ 30 = 19.2% annualized.
How much cash do I need to sell a cash-secured put?
The strike price × 100 for each contract. A $95 put needs $9,500 set aside, because that's what you'd pay for 100 shares if you're assigned. The premium you collect doesn't reduce the requirement at most brokers.
What happens if my cash-secured put is assigned?
You buy 100 shares per contract at the strike price, using the cash you set aside. Because you kept the premium, your real cost is the strike minus the premium: a $95 put sold for $1.50 makes your cost $93.50 a share. Many sellers then sell covered calls on those shares, which is the wheel strategy.
Do I earn interest on the cash collateral?
Often, yes. Many brokers pay money-market or sweep interest on cash held against a short put, and some let you hold the collateral in Treasury bills. That interest is extra return on top of the premium. The calculator has a field for it.
Is a cash-secured put the same as a covered call?
Their payoffs are nearly identical. Owning 100 shares and selling a call has the same profit-and-loss shape as selling a put at the same strike and expiration with the cash set aside. The difference is where you start: the put pays you to wait to buy; the call pays you while you hold.
Sources used in this calculator
Reviewed by the Money Scale editorial team. How we source our data
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