Short Put Calculator
Visualize the P/L for any short put position.
Option Parameters
Key Metrics
Enter parameters and calculate to see results.
Enter parameters and calculate to view P/L chart
Free 160-Page Options Guide
Clear visuals and real examples for every essential concept.
What Is a Short Put?
A short put is selling a put option. You collect a premium upfront and profit if the stock stays above the strike through expiration. If the stock falls below the strike, losses grow until the stock hits $0.
Without cash set aside to buy shares if assigned, it's called a "naked" short put—unlike a cash-secured put.
What Is a Short Put Option? — Full strategy guide with examples
Key Characteristics
- Max Profit: Premium received. Achieved if stock ≥ strike at expiration.
- Max Loss: (Strike − premium) × 100. Occurs if stock falls to $0.
- Breakeven: Strike − premium
- Outlook: Bullish to neutral
How to Read the P/L Chart
The white line (Expiration) shows P/L at expiration. Above the strike, you keep the full premium. Below the strike, losses grow as the stock falls.
The cyan line (T+0) shows theoretical P/L at entry. The gap between lines represents time decay yet to be captured.
Using This Calculator
- Stock Price: Current price at trade entry
- Strike Price: Price you're obligated to buy shares if assigned
- Premium: Credit received. Multiply by 100 for the total credit per contract.
- Days to Expiration: Time until the option expires
- Implied Volatility: The market's expected price movement going forward
Short Put vs Cash-Secured Put
A cash-secured put sets aside cash to cover assignment. A naked short put uses margin instead—less capital required, but you're exposed to margin calls if the stock drops.
The maximum profit and loss are identical. Cash-secured puts suit investors willing to own shares; naked puts are more speculative.
Assignment Risk
If the put is ITM and held through expiration, you'll be assigned and must buy 100 shares at the strike price. Without the necessary buying power to hold the shares, you'll need to sell immediately.
Early assignment is rare—typically only when deep ITM with little extrinsic value.
Naked Short Puts vs Bull Put Spread
Naked puts carry substantial downside risk. For most traders, bull put spreads offer similar exposure with defined risk.
Related Calculators
- Long Put Calculator — Buy a put instead of selling
- Bull Put Spread Calculator — Defined-risk bullish alternative
- Cash-Secured Put Calculator — Conservative version with cash collateral
