Free Calculator
Put Option Calculator
Model long puts and short puts instantly. Enter your stock price, strike, and premium to calculate your downside profit potential, max loss, breakeven price, and visual payoff curve.
Defined Risk: When buying a put, your maximum loss is strictly capped at the premium paid ($400.00).
Net Premium
-$400
Cost to open
Max Profit
$9,600
If stock drops to $0
Max Loss
-$400
Breakeven
$96.00
Strike − Premium ($96.00)
Actually placing this Long Put?
Track it in your journal — free, no credit card required — and see if it pays off once you close it.
Put Option Payoff Formulas & Calculations
Calculate your risk, breakeven, and downside payout before placing a put trade:
Max Profit (Long Put)
(Strike − Premium) × 100 × Contracts
Maximum gain occurs if the underlying stock drops to $0.00.
Max Loss (Long Put)
Premium Paid × 100 × Contracts
Occurs if the stock closes at or below the strike price at expiration.
Breakeven Price
Strike Price − Premium Paid
The stock price at expiration required to cover the option premium.
Intrinsic Value (Put)
Max(0, Strike Price − Stock Price)
The real, immediate value of the put if exercised right now.
Long Put vs. Cash-Secured Put: How Traders Use Put Options
1. Long Put (Hedging or Bearish Directional)
Bought by traders who expect a stock to decline, or as portfolio insurance to protect existing long shares against a market crash. The risk is limited to the premium paid, while gain expands as the stock drops.
2. Cash-Secured Put (Income or Accumulation)
Sold by income traders who want to collect premium upfront or acquire shares at a target strike price below current market value. OptionTrail includes full free support for logging and tracking Cash-Secured Puts.
Log your options trades with zero friction
Keep your short puts, long puts, and multi-leg strategies in one unified journal.
Frequently Asked Questions About Put Options
What is the put option payoff formula?
For a Long Put, Payoff at Expiration = Max(0, Strike Price − Stock Price) − Premium Paid. If the stock falls below the strike, your profit per share equals (Strike Price − Stock Price − Premium Paid). For a Short Put, Payoff = Premium Received − Max(0, Strike Price − Stock Price).
How do you calculate breakeven on a put option?
Put Breakeven = Strike Price − Premium Paid. For example, if you buy a $100 strike put for a $4 premium, your breakeven at expiration is $96 ($100 − $4). The stock must fall below $96 for you to generate a net profit.
How much can you lose on a long put option?
When buying a put (Long Put), your maximum loss is strictly limited to 100% of the premium paid to open the trade. If the stock stays at or above the strike price through expiration, the put expires worthless and you lose the premium paid.
What is the maximum profit on a put option?
Unlike a call option where upside is theoretically unlimited, a stock cannot fall below $0.00. Therefore, the theoretical maximum profit on a long put is: (Strike Price − Premium Paid) × 100 × Contracts, achieved if the company goes bankrupt or the stock drops to zero.
How does a Cash-Secured Put (CSP) relate to a short put?
A Cash-Secured Put is simply a short put where you set aside 100% of the cash needed to buy the shares if assigned (Strike × 100 per contract). It is an income strategy popular among conservative options traders looking to acquire shares at a discount.
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