Sell a put (cash-secured)
intermediatebullishStrategy parameters
Greeks (current)
Delta
46.573
Gamma
-4.621
Theta
5.083
Vega
-11.395
Rho
4.094
Payoff diagram
P&L at expiryP&L today (theoretical)Current spot
Key metrics
Net cost
-$324.24
Credit (received)
Max profit
$324.24
Max loss
-$9,675.76
Breakevens
$96.76
Scenarios at expiry
| Move | Spot | P&L at expiry | % of cost |
|---|---|---|---|
| -20% | $80.00 | -$1,675.76 | -516.8% |
| -10% | $90.00 | -$675.76 | -208.4% |
| -5% | $95.00 | -$175.76 | -54.2% |
| +0% | $100.00 | $324.24 | 100.0% |
| +5% | $105.00 | $324.24 | 100.0% |
| +10% | $110.00 | $324.24 | 100.0% |
| +20% | $120.00 | $324.24 | 100.0% |
Mechanics & risks
How it works
You collect the premium and agree to buy 100 shares at the strike if assigned. Often used to acquire stock at a discount, with cash set aside to cover assignment.
When to use
You're willing to own the stock at the strike price, and you want to be paid while waiting.
Risks
- Loss is large if the stock crashes — bounded by strike (stock can't go below zero).
- Maximum profit capped at premium.
- Cash collateral is locked up until expiry or assignment.