Cash-Secured Put Calculator
Compute premium yield, annualized return on cash at risk, and what your cost basis would be if you're assigned. Built for theta-gang and wheel-strategy traders.
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Payoff Diagram
How a cash-secured put works
The math
Cash at risk = strike × 100 × contracts. Premium yield = premium ÷ strike. Annualized return on capital (ROC) = premium yield × (365 ÷ DTE). Effective cost basis if assigned = strike − premium — which is also your breakeven on the assigned shares. The OIC's CSP page covers the strategy theory in depth.
When CSPs go wrong
The structural risk is identical to owning the stock from breakeven downward: a true crash leaves you long shares at strike − premium, which can be well above where you'd buy now. CSPs are not "free yield" — they're cash-collateralised long-stock exposure with a yield cap. Pick strikes only on names you'd genuinely be happy to own.