Protective Put Calculator
Enter spot cost, put premium paid, strike and expiry price to estimate the protective put's expiry PnL.
Results
Fill in the inputs and click Calculate.
- Expiry PnL
- –
- Break-Even
- –
- Max Loss
- –
Risk disclaimer
This calculator provides a gross single-settlement estimate, not investment advice. Implied volatility moves and early exits affect real results.
What is a protective put?
Hold spot and buy a put as insurance: below the strike the put caps your loss; above it you keep most upside minus the premium.
This estimates gross expiry PnL on a single settlement, ignoring fees, taxes and rolling.
How to use
- Enter your spot cost basis and the put premium paid.
- Enter the strike and expected expiry price.
- Click Calculate to see expiry PnL, break-even and max loss.
Formula
- Expiry ≤ Strike: PnL = (Strike − Cost) − Premium
- Expiry > Strike: PnL = (Expiry − Cost) − Premium
- Break-even = Cost + Premium
Example
Cost 100, premium 4, strike 90: expiry 80 → PnL = (90−100)−4 = −14; expiry 110 → +6.
Max loss = (100−90)+4 = 14; break-even = 104.
FAQ
Is the premium an insurance cost?
Yes. The put premium is the strategy cost: it trims upside and buys a defined downside cap.
Which strike?
Higher strikes protect more but cost more; common choices are near or slightly below your cost.