September 17, 2021

Naked Put Option Calculator

Naked Put Option Calculator

Click here to get a PDF of this post

A naked put option calculator allows an option trader to key in the following data points:

  • Stock Price.
  • Put option strike price.
  • Naked put option premium credit received.
  • Days until expiration.
  • Margin interest rate when needed. 

An option trader must consider whether the put option is a cash-secured put in a cash settled account or a naked but written in a margin account. 

Here is the data that the put calculator will show:

  • Capital required to initiate the put option sell. Cash-secured or margin. 
  • The break even price level for the short put. 
  • The maximum potential gain of credit received. 
  • The potential return on capital at risk from the short put option.
  • Annualized return on capital. 

Click here for the naked put option calculator at OptionMarketMentor.com.

If you are interested in learning more about option trading, I have created the Options 101 eCourse to give new option traders a shortcut to learning how options work.  

Naked Put Option Calculator