Cash-Secured Put Calculator

A cash-secured put (CSP) is a bullish-to-neutral options trade. You sell a put on a stock you'd be willing to own at the strike. You collect premium up front. If the stock stays above your strike, the put expires worthless — you keep the premium and your collateral. If it drops below, you get assigned 100 shares per contract at the strike.

The math you need to evaluate any CSP:

• Capital required: Strike × 100 × number of contracts. This is the cash you must keep secured.
• Premium received: Premium per share × 100 × contracts. Goes into your account immediately.
• Breakeven price: Strike minus premium received. The stock price at which you neither make nor lose money on assignment.
• Cushion: (Spot − Strike) / Spot. The gap between the current price and your strike, expressed as a percentage. The framework calls for ≥5% cushion minimum.
• Raw yield: Premium / strike. The total return on the trade if held to expiry.
• Weekly cash-on-cash: Raw yield ÷ weeks to expiry. The single most important metric for CSP traders. Target ≥1.2%/week.
• Annualized return: Weekly CoC × 52. Useful for comparing to other capital allocations.

The 1.2% rule: Below 1.2% weekly cash-on-cash, a CSP isn't worth the capital lockup. You're collecting roughly the same as a money market fund while accepting the downside risk of assignment. The framework's hard floor is 1.2%/wk, with a sweet spot of 1.5%/wk.

Going past raw math: The calculator above gives you the numbers. The Wheel Filter runs the same trade through 7 framework rules (universe, weekly yield, DTE, OI, delta, cushion, RSI) and gives you a green/yellow/red verdict — that's the level of discipline you actually need for consistent wheel trading.