How much cash do I need to sell a cash-secured put?
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Fill in the fields on the left and click Calculate to see the cash required to secure the put and your return if it expires worthless.
How this is calculated
This applies to a standard cash-secured put: selling one put contract while setting aside enough cash to buy 100 shares per contract at the strike price if assigned. One standard equity option contract represents 100 shares.
Cash required equals the strike price multiplied by 100, multiplied by the number of contracts. Most brokers hold this amount as cash or cash equivalents for as long as the position is open.
Total premium collected equals the premium received per share multiplied by 100, multiplied by the number of contracts. This is yours to keep whether or not the option is later assigned.
Net cost basis if assigned equals the strike price minus the premium received per share. This is the effective price you'd pay per share if the stock is put to you at expiration.
Max return if the put expires worthless equals total premium collected divided by cash required, shown as a percentage. This is the best-case outcome and assumes the stock closes above the strike at expiration.
Annualized return, shown only if you enter days to expiration, scales the max return to a 365-day basis so you can compare cash-secured puts with different expiration dates on equal footing.
This does not include commissions, per-contract fees, margin requirements that differ from full cash collateral, early assignment, or the risk that the stock falls well below your cost basis after assignment.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Selling puts obligates you to buy shares at the strike price if assigned, and the stock can fall well below that price. Options trading involves risk of loss, and past results do not predict future outcomes. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation. Always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
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