Put Option Cost Calculator
Calculate the total cost and breakeven price of buying a put option.
See your maximum profit, maximum loss, and breakeven point.
Your data stays in your browser. We do not store, collect, or transmit any information you enter.
Put Option Analysis
A put option gives you the right (but not the obligation) to sell a stock at the strike price before expiration.
Key formulas:
Total Cost = Premium per Share × 100 × Number of Contracts
Breakeven Price = Strike Price − Premium per Share
Max Profit = (Strike Price − Premium) × 100 × Contracts
(If stock goes to $0)
Max Loss = Total Premium Paid
(If stock stays above strike)
How put options work:
- You pay a premium to buy the put contract
- Each contract controls 100 shares
- If the stock falls below the strike price, the put gains value
- If the stock stays above the strike price, the put expires worthless
Common uses:
- Hedging: Protect existing stock positions from downside risk
- Speculation: Profit from expected price declines
- Insurance: Like buying insurance on your portfolio
Breakeven rule: The stock must fall below the strike price by MORE than the premium you paid for the trade to be profitable.