Calculate your CSP premium income, breakeven, and annualized return. Understand assignment risk before selling.
Open Options CalculatorEnter your trade details below to instantly see profit, breakeven, and risk metrics.
A cash-secured put (CSP) is an options strategy where you sell a put option while holding enough cash in your account to buy the stock if you get assigned. For each put contract sold, you need cash equal to the strike price multiplied by 100 shares.
When you sell a cash-secured put, you receive premium income immediately. In return, you take on the obligation to buy 100 shares at the strike price if the stock falls below the strike at expiration. This strategy is popular among investors who:
The key advantage of a cash-secured put over simply buying the stock is that you get paid premium regardless of whether you are assigned. If the stock stays above the strike, you keep the premium as pure profit and can sell another put.
Understanding the numbers behind cash-secured puts helps you compare opportunities and manage risk effectively.
DTE = Days to Expiration. The denominator uses Strike Price (not stock price) because that is the capital at risk as collateral.
Example: The stock trades at $52 and you sell a $50 put for $1.50 premium with 30 days to expiration.
If the stock drops significantly below the strike, you will be assigned and forced to buy shares at the strike price, which may be well above the market price. Your maximum loss is (Strike Price - Premium) per share, which occurs if the stock goes to zero. Always sell puts only on stocks you genuinely want to own at the strike price.
AllInvestView provides everything you need to analyze, execute, and track cash-secured put positions.
Calculate your income from selling puts at different strike prices and expirations. Compare the premium-to-risk ratio across multiple opportunities to find the best trades.
See exactly what happens if you get assigned. Know your effective cost basis, cash requirements, and how much downside you are exposed to before entering the trade.
If assigned, your cost basis is the strike price minus premium received. AllInvestView automatically tracks this reduced cost basis when you transition from a CSP to a stock position.
Cash-secured puts are step 1 of the wheel strategy. AllInvestView tracks your full wheel lifecycle: sell put, get assigned, sell covered call, get called away, and repeat.
Analyze and track your cash-secured puts in three simple steps.
Input the strike price, premium received, expiration date, and number of contracts. Or import directly from your connected brokerage account.
View max profit, breakeven, assignment cost, and annualized return. Understand your risk profile before committing your capital.
Monitor the position in your portfolio. If assigned, seamlessly transition to covered calls as part of the wheel strategy.
Deepen your understanding with these related resources.
You need enough cash to purchase 100 shares at the strike price per contract. For example, selling one put with a $50 strike requires $5,000 in cash collateral. This cash is held by your broker and cannot be used for other trades while the put is open. The premium you receive does not reduce the cash requirement, though it is immediately credited to your account.
Your breakeven is the strike price minus the premium received. Below this price, you start losing money if assigned. For example, selling a $50 put for $2.00 gives you a breakeven of $48.00. As long as the stock stays above $48.00, even if you get assigned, your position is not at a loss because the premium offsets the difference between strike and market price.
Assignment means you are obligated to buy 100 shares per contract at the strike price. Your cash collateral is used to purchase the shares. Your effective cost basis is the strike price minus the premium you originally received. Many CSP sellers view assignment as a positive outcome since they picked a stock and price they wanted. After assignment, you can begin selling covered calls against the shares to continue generating income.
Annualized return on a CSP is (Premium / Strike Price) × (365 / DTE) × 100. The strike price is used as the denominator because it represents the capital tied up as collateral. This formula lets you compare puts with different expirations on an equal basis. A 30-day put with 3% return annualizes to 36.5%, while a 60-day put with the same 3% annualizes to only 18.25%.
The wheel strategy is a systematic income generation cycle that starts with cash-secured puts. You sell a CSP on a stock you want to own. If it expires worthless, you keep the premium and sell another put. If you get assigned, you take ownership of the shares and immediately sell a covered call against them. If the covered call expires worthless, you sell another one. If you get called away, you go back to selling puts. AllInvestView tracks this entire lifecycle with the Wheel Strategy Tracker, automatically advancing through each phase.
Join thousands of investors using AllInvestView to calculate, track, and optimize their CSP and wheel strategy positions.