Protective Put Calculator
See your protected floor, the most you can lose, and what the insurance costs when you hedge a stock with a put. Free, no signup.
What is Protective Put?
Protective Put is downside insurance on stock you own: you buy a put option, which lets you sell your shares at the strike no matter how far the stock falls. Also called a married put when bought at the same time as the stock.
This calculator shows the exact floor the put creates, the most you can lose, and what the insurance costs.
Your Hedge
To finance the put by capping your upside, see the collar calculator. Read the strategy on the protective put guide.
Your Protection
How the Protective Put Calculator Works
A protective put gives your stock a hard floor. You buy a put, which gives you the right to sell your shares at the strike price — so no matter how far the stock falls, your downside stops at that strike. The cost is the premium you pay for the put, which is the price of the insurance.
The calculator projects total P&L across every stock price. Below the put strike the line is flat — your loss is capped. Above the strike you participate in the upside one-for-one, minus the premium. Max loss = entry − put strike + premium. Breakeven = entry + premium.
The trade-off is the recurring cost of the premium. If you want to offset it, a collar sells a call to finance the put — at the cost of capping your upside.
Frequently Asked Questions
What is a protective put calculator?
A tool that shows the protected floor, max loss, insurance cost and breakeven when you hedge stock you own by buying a put (a married put). It tells you the most you can lose no matter how far the stock falls.
How is the max loss calculated?
Max loss per share = entry price − put strike + premium. The put lets you sell at the strike, so your worst case is fixed regardless of how far the stock drops below it.
What is the breakeven?
Entry price + put premium. The stock must rise by the cost of the put before the hedged position is back to even. Above that, your upside is unlimited minus the premium.
Is a protective put worth it?
It caps your downside completely while keeping unlimited upside, but the premium is a recurring drag. It's most worthwhile around events or uncertain periods. To cut the cost, a collar finances the put by selling a call — capping your upside in return.