Cash-secured put

Sell a put while holding enough cash to buy the shares at strike if assigned. Generates premium income; great for entering long positions at a discount.

INPUTS

Underlying price

Centers the payoff chart and computes P&L at this price.

LEGS

Short put

Type

Side

Strike

Qty

Premium

RESULT

$60.001 strike$140.00

P&L at current spot (expiry)

+$150

Net credit+$150

Max profit+$150

Max loss−$9,350

Breakeven$93.50

Risk / reward0.02 : 1

Collateral required+$9,500

Return on capital1.58%

RISK PROFILE

Max profit

Premium received × 100 × contracts

Max loss

(Strike × 100 × contracts) − premium received

Breakeven

Strike − premium received

RELATED STRATEGIES

Covered call

Income · Own 100 shares, sell call against them.

Short put (naked)

Bullish · Capped profit, large downside if assigned.

Long call

Bullish · Limited risk, unlimited upside.

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