What is a cash-secured put?

A cash-secured put is a short put option backed by cash equal to 100 shares × strike price. You collect premium up front; if the stock stays above the strike at expiration you keep the premium. If it drops below, you are obligated to buy the shares at the strike.

How is annualized return on capital calculated for a CSP?

Annualized ROC = (Premium ÷ Cash secured) × (365 ÷ days to expiration). Cash secured equals strike × 100 × number of contracts.

What is the effective cost basis if a cash-secured put is assigned?

Effective cost basis = strike − premium received. This is the true price you pay per share if assigned, and is usually below the strike and often below current spot.

What delta should I sell cash-secured puts at?

Income sellers typically target −0.15 to −0.30 delta, giving roughly a 70–85% chance the put expires worthless. Lower (more negative) deltas yield more premium but increase assignment risk.

Is selling cash-secured puts safer than buying the stock?

CSPs have slightly less downside than outright stock ownership because the premium received cushions losses. Maximum loss is still substantial — equal to (strike − premium) × 100 if the stock goes to zero.

Cash-Secured Put Calculator — Annualized Return on Capital

How a cash-secured put works

' + '

Data SourceStored locally on your device.

' + '

' + '' + '' + '' + '' + '

' + '

Polygon API key

' + '

Tradier access token

' + '

Tradier environment

' + '' + '

Keys saved to localStorage on this device only.

' + '

'; el.querySelectorAll('[data-prov]').forEach(function (btn) { btn.onclick = function () { setProvider(btn.dataset.prov); mountSettings(el); document.dispatchEvent(new CustomEvent('oit:provider-changed')); }; }); var save = el.querySelector('#oit-save-keys'); if (save) save.onclick = function () { setKeys({ polygon: el.querySelector('#oit-key-polygon').value.trim(), tradier: el.querySelector('#oit-key-tradier').value.trim() }); localStorage.setItem(TRADIER_ENV_KEY, el.querySelector('#oit-tradier-env').value); save.textContent = 'Saved ✓'; setTimeout(function () { save.textContent = 'Save'; }, 1500); document.dispatchEvent(new CustomEvent('oit:keys-changed')); }; } Connector.mountSettings = mountSettings; // Expose connector on multiple globals (different scripts in the project expect different names) global.DataConnector = Connector; global.OITApi = Connector; global.OIT = global.OIT || {}; global.OIT.api = Connector; })(window);

Cash-secured put calculator — premium yield and return on capital

Trade Inputs

Results

Payoff Diagram

How a cash-secured put works