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Naked Put Calculator

Selling a naked put is a very risky proposition. Basically, you sell the put option and agree to buy the stock at that price of the put option. Now, if the stock drops to zero, you still pay the price of the put option. Some investors sell a high price put option and then buy a low price put option for protection. This calculator covers the idea of only selling the put option, and does not cover buying the lower price put option for protection.

For this calculator, the only important prices are the strike price of the put option and current market price of the put option. The put option will only be effective if the stock trades below that price. This calculator will calculate the break even and the percent return for a naked put. The percent return assumes buying the stock at the put strike price.


Strike price

Put option price

Press Here:
Output

*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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