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Covered Put Calculator
Covered puts allow you to sell put option contracts and potentially make money when the stock closes above the put price. It is one way to generate short term gains without the long term risks of losing money owning the stock. It can also be used as a way to put in a limit order on buying stock and generate income in the process. This calculator will use the cash available to figure out how many contracts can be sold based on the strike price.

Strike price

Put Option price

Cash

Stock

Press Here:

Press button for Calculations.

Each options contract is for 100 shares. For example, SPY is an ETF for Standard and Poors 500. If it's trading at 292 and you have $30,000, you can sell a 290 put contract at $2 in two weeks and make $200 if the price stays above 290. If it goes below 290, you will buy SPY at 290 for $29,000. The risk with selling covered puts is the price dropping significantly below the strike price. Save trades by putting in a stock name. Show prior trades by putting in the stock and clicking "Show Stock". Delete a stock by clicking on "Delete Stock".
*Optional

Glossary:

  1. Percent Return = Option Price / Strike Price
  2. Break Even = Strike Price - Option Price

 

Links:

More Reading: http://www.coveredcallstutorial.com/

Chicago Board of Options Exchange
Javascript Math Functions
Converting Strings to Numbers

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