Bullish strategy · Intermediate
Market outlook Moderately bullish
Short put backed by cash sufficient for assignment.
Each row reprices every live leg independently. Entry premiums stay fixed.
| Underlying price | Move | Profit / loss |
|---|
Dollar-scaled for each leg's quantity, multiplier, expiry, and IV. Theta is per day; vega and rho are per one percentage-point move.
| Leg | Delta | Theta/day | Vega |
|---|
Strike configurations
Sell a put near the current stock price for maximum premium and a higher chance of assignment.
Key difference: Larger premium collected, but assignment (buying the stock) is much more likely.
Best for: Traders who genuinely want to own the stock and are comfortable being assigned.
Sell a put well below the current price, effectively naming your desired discounted entry price.
Key difference: Smaller premium, but a much lower probability of assignment.
Best for: Traders who prefer to collect income and only buy the stock at a meaningful discount.
Common questions
You buy 100 shares per contract at the strike price, funded by the cash already set aside, and keep the premium collected — effectively buying the stock at a discount to the strike.
Enough to buy 100 shares at the strike price per contract (strike × 100), since the position must be fully collateralized rather than sold on margin.
Selling a cash-secured put to acquire shares at a discount, then selling covered calls once assigned, is a common combined income cycle sometimes called 'the wheel.'
You're still obligated to buy at the strike price, so losses below the strike are only offset by the premium collected — a cash-secured put carries real downside risk despite the income framing.
Deep dive
Detailed explanations, management techniques, and real-world scenarios
Scenario Lab
Explore how this position changes before expiration
Quick reference
Quick answers about when to use, capital needed, and key risks
Profit and loss
Compare max profit, max loss and break-even across common strategies
Custom calculator
Combine calls, puts, stock, quantities and different expirations
Risk sensitivity
Inspect Delta, Gamma, Theta, Vega and Rho
Same market view
Every bullish structure on the site, ranked by risk and capital needed
Same experience level
Structures with a comparable learning curve to the cash-secured put
Head-to-head
Structure, cost, and breakeven differences compared side by side
This calculator uses exact intrinsic value at a leg’s expiration and Black–Scholes theoretical value while that leg remains open. Position Greeks use the same visible legs and model assumptions. Results exclude fees, tax, liquidity, margin, early exercise and assignment behavior. Educational illustration only—not financial advice.