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Options Wheel Calculator
Calculate income, return, annualized return and breakeven for cash-secured puts and covered calls. All numbers are yours, this calculator makes no market data requests.
Results
Income$100.00
Return2.00%
Annualized24.33%simple, not compounded
Capital required$5,000.00
Breakeven / cost if assigned$49.00
How it is calculated
Cash-secured put:
capital = strike × 100 × contracts income = premium × 100 × contracts return % = premium / strike annualized % = (premium / strike) × (365 / DTE) ← simple, not compounded breakeven = strike − premium
Covered call:
income = premium × 100 × contracts static return % = premium / current price annualized % = (premium / current price) × (365 / DTE) ← simple if called: profit = (strike − cost basis) + premium if called: return % = profit / cost basis downside breakeven = cost basis − premium
Annualized figures use simple interest. Real returns depend on whether you get assigned, whether you roll contracts, and what happens to the underlying stock.
Frequently asked questions
What is a cash-secured put?
A cash-secured put (CSP) is a strategy where you sell a put option and hold enough cash to buy 100 shares if assigned. You collect the premium upfront and keep it if the stock stays above the strike at expiration. If assigned, your effective cost basis is the strike minus the premium.
How is annualized return calculated here?
This calculator uses simple annualization: (premium / strike) × (365 / DTE) × 100. It does not compound, and it assumes you repeat the trade every cycle for a year. Real results depend on assignment, rollovers and stock performance.
What is the wheel strategy?
The wheel is a systematic income strategy: sell a cash-secured put, collect premium, get assigned if the stock drops, then sell covered calls against the shares to collect more premium until the shares are called away. You repeat the cycle, reducing cost basis each time.
What is covered call downside breakeven?
The downside breakeven on a covered call is your cost basis minus the premium received. For example, if you paid $45 per share and collect $1.20 in premium, your breakeven is $43.80. The stock can drop to $43.80 before you lose money on the combined position.
Does this calculator use live market data?
No. All numbers are entered by you. The calculator performs math on what you type, no prices are fetched from any exchange or data provider.
Educational information, not investment advice.