This calculator is designed for traders and investors to analyze potential outcomes of cash-secured put options. It helps assess the risk and reward of this strategy by calculating essential metrics.
Calculator
Results
Break-even Price
$0.00
Maximum Profit
$0.00
Maximum Loss
$0.00
Data Source and Methodology
All calculations are based on standard option pricing models and financial market data.
The Formula Explained
Break-even Price: Strike Price - Premium Received
Maximum Profit: Premium Received × Number of Contracts
Maximum Loss: (Strike Price - Premium Received) × Number of Contracts
Glossary of Terms
- Stock Price: The current price of the underlying stock.
- Strike Price: The price at which the put option can be exercised.
- Premium Received: The amount received for writing the option.
- Contracts: The number of option contracts involved in the trade.
Frequently Asked Questions (FAQ)
What is a cash-secured put?
A cash-secured put is an options strategy where an investor writes a put option and simultaneously sets aside the cash needed to purchase the stock if assigned.
How is the break-even price calculated?
The break-even price is calculated by subtracting the premium received from the strike price.
Formula (LaTeX) + variables + units
This section shows the formulas used by the calculator engine, plus variable definitions and units.
Formula (extracted LaTeX)
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Formula (extracted LaTeX)
\[{breakevenPrice.toFixed(2)}`; document.getElementById('max-profit').textContent = `\]
{breakevenPrice.toFixed(2)}`; document.getElementById('max-profit').textContent = `
Variables and units
- T = property tax (annual or monthly depending on input) (currency)
Sources (authoritative):
- NIST — Weights and measures — nist.gov · Accessed 2026-01-19
https://www.nist.gov/pml/weights-and-measures - FTC — Consumer advice — consumer.ftc.gov · Accessed 2026-01-19
https://consumer.ftc.gov/
Changelog
Version: 0.1.0-draft
Last code update: 2026-01-19
Last code update: 2026-01-19
0.1.0-draft · 2026-01-19
- Initial audit spec draft generated from HTML extraction (review required).
- Verify formulas match the calculator engine and convert any text-only formulas to LaTeX.
- Confirm sources are authoritative and relevant to the calculator methodology.