Long put break-even price
Break-Even = Strike Price − Option Premium Paid
- Strike Price
- Price at which the put can sell the stock.
- Option Premium Paid
- Price of the put per share. Multiply by 100 and by the number of contracts for the dollar debit.
Financial Calculation Summary • Investing
Put Option Calculator
Calculate put option profit/loss, breakeven stock price, maximum risk, and ROI at expiration. Supports both buying long puts and selling cash-secured puts.
Prepared on
For informational & planning purposes
InvestingIntermediate5 min
Put Option Calculator
Calculate put option profit/loss, breakeven stock price, maximum risk, and ROI at expiration. Supports both buying long puts and selling cash-secured puts.
- put option
- long put
- cash secured put
- breakeven
- options
- premium
Put option
Expiration profit and loss for a long or short put.
Break-even price
$95.00
Strike minus premium
Max risk
$500.00
Max profit at $0: $9,500.00
Expiration P&L
$1,500.00
$15.00 per share
Long put profit at expiration
Profit uses the strike, the premium, and 100 shares per contract.
Key Takeaway: Profit/Loss decreases from $4,500.00 (50) to -$500.00 (150), a net change of -$5,000.00 (-111.1%).
Note: Estimates are based on user-supplied inputs and standard financial formulas. Verify figures with a qualified financial advisor or accountant before making financial decisions.Page 1 of 1
Was this calculator helpful?
Methodology
Formula & methodology
At expiration a put is worth the greater of zero and the strike minus the stock price. The long put buyer paid the premium. The short put seller collected it and must hold cash collateral of strike times 100 times contracts.
Long put profit per share
P&L = MAX(0, Strike Price − Stock Price at Expiration) − Premium Paid
- Stock Price at Expiration
- The share price used to settle the put. The calculator applies the price you enter.
Short put profit per share
P&L = Premium Received − MAX(0, Strike Price − Stock Price at Expiration)
- Premium Received
- Credit per share. Max profit is that credit. Cash collateral is Strike × 100 × Contracts.
- Return on Capital
- Premium collected divided by cash collateral. It is the return if the put expires worthless.
Worked example: $100 strike put, $5 premium, stock at $80
- Buy 1 contract (100 shares) of the $100 strike put for $5. Debit = $500. Break-even = $100 − $5 = $95.
- At a stock price of $80, long put profit per share = MAX(0, $100 − $80) − $5 = $15. Contract profit = $1,500. Maximum loss is the $500 premium.
- Sell that same put instead. Short put profit per share = $5 − MAX(0, $100 − $80) = −$15, or a $1,500 loss.
- If the short put expires with the stock at or above $100, max profit is the $500 premium. Cash collateral = $100 × 100 × 1 = $10,000. Return on capital = $500 / $10,000 = 5%.
The long put breaks even at $95 and makes $15 per share at $80. The short put's max profit is $500, its break-even is also $95, and it ties up $10,000 of cash for a 5% return if it expires worthless.
Golden Door Financial Model EngineNext Step
Scale From This Calculation Into a Complete 3-Statement Model
Autonomous Financial Analysis & Valuation for Operators, Investors & Founders
Don't stop at an isolated metric. Connect your assumptions, margins, debt, and growth projections into dynamic income statements, balance sheets, and cash flows.
Fully Integrated 3-Statement Modeling
Dynamic Scenario & Sensitivity Analysis
Audit-Ready Executive Reports
Build Your Full Model with Golden DoorDirect access to our flagship financial engine • goldendoorasset.com/model
Guide
How to read this calculator
Helpful tips
- 1Save your calculations by bookmarking this page with your inputs in the URL.
- 2Try different scenarios to understand how changes affect your results.
- 3Share this calculator with friends or family who might find it useful.
- 4Use the results as a starting point for conversations with financial advisors.
- 5Bookmark this page and revisit quarterly to track your progress toward goals.
How to Use the Put Option Calculator
Long put break-even = Strike Price − Option Premium Paid. Long put profit per share = MAX(0, Strike − Stock Price at Expiration) − Premium Paid. Short put profit per share = Premium Received − MAX(0, Strike − Stock Price at Expiration). One contract covers 100 shares.
Step-by-Step Instructions
1
Choose Long Put (Buy Put) or Short Put (Sell / Write Cash-Secured Put).
2
Enter the current stock price, the strike price, and the premium per share.
Premium is the option price, not the stock price. A $5 premium is $500 per contract.
3
Enter the number of contracts. Cash collateral for a short put is Strike × 100 × Contracts.
4
For a long put, read break-even, maximum risk (the premium), and profit or loss at the stock price you entered.
5
For a short put, read max profit (premium collected), break-even, cash collateral, and return on capital.
When to Use This Calculator
Use when buying puts for portfolio protection, speculating on price declines, or evaluating options strategies.
put optionlong putcash secured putbreakevenoptions
Who Benefits Most
- •Options Traders
- •Portfolio Managers
- •Hedgers
- •Investors
5 min
IntermediateUnderstanding Your Results
Long and short puts share a break-even price and have opposite profit. The short put adds a cash collateral requirement.
What Each Result Means
Break-even price
Strike minus the premium per share.
Interpretation: The long put profits below this price. The short put profits above it, up to the premium collected.
Profit or loss
Expiration value of the put, minus the premium for a long and the reverse for a short, times 100 shares per contract.
Interpretation: The figure uses the stock price you entered as the expiration price. It does not include remaining time value.
Cash collateral and return on capital
Shown for a short put. Collateral is strike × 100 × contracts. Return on capital is premium divided by that collateral.
Interpretation: Return on capital assumes the put expires worthless and the cash was reserved for the whole life of the trade.
What to Do With Your Results
If You are selling the put:
Check that the cash collateral is available. Max profit is capped at the premium, and the loss grows as the stock falls through the strike.
Important Limitations:
- • Results are expiration values. They omit time value, implied volatility, early assignment, and commissions.
- • A short put can lose far more than the premium. The calculator does not apply portfolio margin or a broker's naked-put requirement. Collateral is the cash-secured amount, strike × 100 × contracts.
- • The premium is per share and does not include contract fees. Taxes on the premium are not deducted from return on capital.
Real-World Example: $100 strike, $5 premium, stock expires at $80
Scenario
One contract of a $100 put is priced at $5. The long buyer and the cash-secured seller both mark the position with the stock at $80, and the seller also measures the return if the put expires worthless.
Outcome
Long P&L is $15 per share ($1,500). Break-even is $95 either way. The seller loses $1,500 at $80. If the stock finishes at or above the strike, the seller keeps $500 on $10,000 of collateral, a 5% return on capital.
Frequently Asked Questions
Common questions about the Put Option Calculator
Understanding Results(2 questions)
Best Practices(1 questions)
Advanced(1 questions)
Still have questions? Check our financial glossary for definitions or explore our learning resources.
Explore Related Calculators
Call Option Calculator
Calculate call option profit/loss, breakeven price, and maximum risk. Evaluate bullish options strategies.
InvestingIntermediate
5 min
investingfinancebusiness
Black-Scholes Calculator
Calculate option prices using the Black-Scholes model.
InvestingAdvanced
6-10 minutes
optionsBlack-Scholesderivatives
Options Spread Calculator
Calculate profit/loss for options spread strategies.
InvestingAdvanced
8-12 minutes
optionsspreadsderivatives
Put-Call Parity Calculator
Calculate put-call parity relationships for options pricing and arbitrage opportunities.
InvestingAdvanced
5-7 minutes
put-call parityoptionsderivatives