Put Selling Calculator
How to use this calculator:
To use this calculator, simply fill in values for the 5 orange boxes. Once you have filled in each box, you will see a summary of the trade and then two possible scenarios for how the trade could play out.
Notes:
If you are new to options trading, make sure to read The Trading Club Playbook which can be found here.
When you are "On The Hook" you will need to have enough funds in your account to buy 100 shares of the stock for each contract you are selling. Remember, when you are selling a put, you are guaranteeing to buy shares at the Strike price if shares if the buyer exercises the put option. We encourage new traders to maintain enough cash in their accounts to cover their "On the Hook" amount.
When you are a Put seller, a put that "expires worthless" is a good thing! It means the stock is trading above the strike price that you guaranteed to pay. The buyer can sell the shares at a higher price in the market and thus does not need to exercise their put option, making it worthless.
When you get "put the shares", it means that the put buyer is forcing you to buy the shares at the strike price. Please note that this can happen at any time after you sell the put, but typically won't happen until the expiration date.
If you have any questions on how to use this calculator, feel free and contact our customer service team which is available Monday through Friday from 9 AM to 5 PM ET. Members can reach out by phone at 888-610-8895 (or +1 443-815-4447 for international callers) or via email at [email protected].