How to use it
Enter the put strike you’re selling, the premium per share, the number of contracts, and days to expiration. The calculator returns your return on the cash collateral, the annualized version, the premium income in dollars, the cash required, and your effective purchase price if assigned.
The math
return = premium ÷ strike, annualized = return × 365 ÷ days, and
effective buy price = strike − premium. Selling a $50 put for $1.50 over 30 days is a
3% return on collateral (36.5% annualized), collects $150 per contract against $5,000 of cash, and
sets your break-even at $48.50.
TradeCaliper is a planning and education tool, not financial advice.