Sell a put against cash you are willing to spend, and get paid to name your entry price.
DEBIT (at start)—
Current Gain/Loss—
Legs
Max profit—
Max loss—
Breakeven(s)—
P&L @ spot—
P&L at the selected date, priced with Black–Scholes. At 0 DTE the curve is pure intrinsic value. A tool, not a recommendation.
—
—
Open—
High—
Low—
Prev close—
52W high—
52W low—
Volume—
Market cap—
P/E—
EPS—
Div yield—
Ex-div—
Pay date—
Last earnings—
What a Cash-Secured Put is
Structure: Short 1 put, fully collateralized with cash (strike × 100). The put is usually written out-of-the-money.
A cash-secured put is a short put with the assignment money set aside. You collect the premium; if the stock closes below the strike you buy it at the strike, and your effective entry is the strike minus the premium you already banked.
It is the same economic bet as a limit order below the market, except someone pays you to wait. The tool shows the credit, the breakeven, and the full loss if the stock keeps falling.
The numbers
Max profit
premium received
Max loss
strike − premium received, if the stock goes to zero
Breakeven
strike − premium received
These are at-expiration formulas. The chart above prices the structure at the selected date with Black–Scholes — at 0 DTE the curve is pure intrinsic value. A tool, not a recommendation.
When traders use it
You want the shares, but only at a lower price, and you are happy to be paid while you wait.
The cash is genuinely available — that is the "secured" part. On margin, the trade is a different, more dangerous one.
You have sized it so full assignment at the strike fits the position you wanted anyway.
What works against it
A put can be assigned while it is still worth more than your credit — the loss is real the moment the stock is below your breakeven.
The downside is the stock going to zero, less the premium. High-volatility names price the put richly for a reason.
Assignment can arrive early, for example right before an ex-dividend date.
Cash-Secured Put questions
How much cash does a cash-secured put tie up?
The strike times 100, minus the premium you collected. A $50 strike sold for $1.50 requires $4,850 of available cash, and that is the capital the position consumes until it expires or is closed.
What is the breakeven?
Strike minus premium. Selling the $50 put for $1.50 breaks even at $48.50 — the price your effective position starts losing.
Is a cash-secured put the same as a short put?
The payoff is identical. The difference is what backs it: a cash-secured put holds the full assignment cash, a naked short put uses margin and can lose far more than the account holds if the stock gaps.
How do I pick the strike?
The tool will show you the shape for any strike, and the probability calculator covers the odds of finishing above it. The strike you choose is the price you are agreeing to buy at — pick one you would accept on its own merits.
If it goes against you: common mitigations
Every entry below is a response traders commonly plan before entry, with what it actually costs. Which one is right depends on why you entered and what you now expect — that is a judgement the calculator cannot make for you, and none of this is advice.
Roll down and out
Buy back the put and sell a lower strike in a later expiry, for a credit where possible.
Pros: Lowers the effective entry price if assigned and keeps premium coming in.
Cons: A lower strike means a bigger loss if the stock keeps falling there, and the roll may not be available for a credit.
Consider when: The stock fell for reasons you consider temporary and you would still own it lower.
Roll out at the same strike
Move the same strike to a later expiry.
Pros: Keeps your intended entry price and delays the cash commitment.
Cons: The cash stays tied up, and the stock can fall further while you wait.
Consider when: You want the same entry price, just later.
Take assignment and start the wheel
Accept the shares at the strike, then write a covered call against them.
Pros: Turns into the position you agreed to buy, and can begin producing premium against it.
Cons: You now own stock at a loss with full downside, and the call you write caps the recovery.
Consider when: Being assigned at that strike was the plan when you sold the put.
Buy it back early
Close the put while it still has value and step away.
Pros: Caps the damage at a chosen level and frees the collateral immediately.
Cons: You pay the current market price for something you sold cheaper, so the loss is realised rather than deferred.
Consider when: The reason you liked the trade has broken — the thesis changed, not just the price.