What is the max profit of a cash-secured put?

Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.

What is the max loss of a cash-secured put?

Nearly unlimited: a large move against it can lose many times what it takes in. The calculator gives the figure for your strikes and expiration.

How do I calculate a cash-secured put's profit and loss?

Open the cash-secured put in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.

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Cash-secured put calculator

Neutral to slightly bullish. Sell a put and keep cash ready to buy the stock.

Open in the calculator All strategies

OutlookIncome

Max profitLimited

Max lossNearly unlimited

LevelNovice

What is a cash-secured put?

A cash-secured put is an income sale. You keep the credit if the stock stays above the strike. If it drops through A you may be assigned shares, so max loss is nearly the strike minus the credit.

Legs

Sell a put at strike A

Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Net credit$664.00

ROIC0.93%

Max loss$70,435.00

Max profit$664.00

Chance of profitLocked: ProUpgrade

BreakevenAbove $704.36 (−6.8%)At expiration

Est. margin$70,436.00

711P−112/18 · $6.64

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): sell 1 711 put. Net credit $664. Max profit $664; max loss $70,435. Breakeven at expiration: Above $704.36 (−6.8%).

Open this cash-secured put in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.

Questions

What is a cash-secured put?: A cash-secured put is an income sale. You keep the credit if the stock stays above the strike. If it drops through A you may be assigned shares, so max loss is nearly the strike minus the credit.
When does a cash-secured put make money?: Neutral to slightly bullish. Sell a put and keep cash ready to buy the stock.
What is the max profit of a cash-secured put?: Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
What is the max loss of a cash-secured put?: Nearly unlimited: a large move against it can lose many times what it takes in. The calculator gives the figure for your strikes and expiration.
How do I calculate a cash-secured put's profit and loss?: Open the cash-secured put in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.