Wheel Strategy Calculator
Size up a cash-secured put or covered call in seconds. Enter the strike, premium, current price, and days to expiration to see the premium collected, static and annualized return, breakeven, cost basis if assigned, and your downside cushion.
Annualized return assumes this cycle repeats and every cycle expires clean, it will not. It ignores assignment losses. Treat it as a comparison tool, not an expected return.
Read the annualized number with suspicion
This calculator will happily show you a big annualized return, and every options platform does the same. Remember what it assumes: that you repeat this exact trade all year and never get assigned on a loser. That never fully holds. The annualized figure is useful for comparing one strike or expiration against another, not as a promise of yearly income.
If you're new to this, start with the concepts behind the numbers: cash-secured puts, covered calls, and how the wheel connects them. The calculator is only as good as your judgment about whether you'd be happy owning the stock at the strike.
Common questions
How do you calculate return on a cash-secured put?
Static return = premium ÷ collateral (strike x 100). A $0.60 premium on a $20 strike is $60 on $2,000 = 3% for the cycle. Annualize by x(365 ÷ days to expiration). That annualized number assumes every cycle repeats and expires clean, so it overstates reality.
What is the breakeven on a cash-secured put?
Strike − premium. Sell a $20 put for $0.60 and your breakeven, and your cost basis if assigned, is $19.40. The distance from today's price down to that breakeven is your downside cushion.
Why is the annualized return misleading?
It assumes you repeat the trade all year and every cycle expires clean. Reality includes assignments on falling stocks that erase many cycles of premium. Use annualized return to compare trades, never as an expected yearly return. See is the wheel profitable.
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This calculator is for education and general information only, not financial, investment, or tax advice. Results are estimates based on the assumptions you enter and do not predict actual returns.