How is Cash-Secured Put breakeven calculated?
At expiration, the standard breakeven is the put strike price minus the premium received per share. This represents the effective purchase price before fees if assigned.
A Cash-Secured Put sells one put while reserving sufficient cash to purchase shares if assigned. The position collects option premium in exchange for the obligation to buy at the selected strike.
Calculate This StrategyAt expiration, the standard breakeven is the put strike price minus the premium received per share. This represents the effective purchase price before fees if assigned.
The theoretical maximum profit is generally limited to the premium received, excluding fees and other broker-specific costs.
Explore similar approaches and alternatives to find the best fit for your market outlook.
Similar market outlook or risk profile
Different ways to achieve similar or opposite goals
Bearish
A Long Put buys one put option and gives the holder the right to sell shares at the selected strike before expiration. It is a defined-risk position that can benefit when the underlying price falls.
Moderately bearish
A Bear Put Spread buys one put at a higher strike and sells one put at a lower strike with the same expiration. This creates a defined-risk, defined-reward position with lower cost than buying a put alone.
Easier strategies with fewer legs
Bearish
A Long Put buys one put option and gives the holder the right to sell shares at the selected strike before expiration. It is a defined-risk position that can benefit when the underlying price falls.
Neutral (range-bound)
An Iron Condor combines a bull put spread and a bear call spread. It profits when the underlying stays within a defined range between the short strikes, collecting premium from all four options.
Educational use only. Options involve risk and this calculator does not provide investment advice or guarantee an outcome.