Skip to content
snip tools

Wheel strategy calculator

Model a full wheel cycle: cash-secured put → assignment → covered call.

Runs 100% in your browser

Cash-secured put

Covered call (if assigned)

Put yield (annualised)
—
Cost basis if assigned
—
Full-cycle profit
—
Return on cash
—
Annualised (cycle)
—
Total premium
—

How to calculate wheel strategy returns

  1. Enter the cash-secured put. Set the put strike, premium received and days to expiration.
  2. Enter the covered call. Set the call strike, premium and days for the call leg you’d sell if assigned.
  3. Read the cycle returns. See cost basis, full-cycle profit, return on cash and annualised yield.

Running the wheel

The wheel strings together two income trades you can model on their own here: the cash-secured put, and then the covered call once you own shares. Many wheelers pick put strikes near the expected move on stocks they’re happy to hold long term.

Educational tool only — not financial advice. Assumes a full assignment-then-called cycle; you can be left holding a declining stock below your cost basis. Options trading carries a high level of risk.

Frequently asked questions

What is the wheel strategy?
The wheel is an income cycle: sell a cash-secured put on a stock you’re willing to own; if assigned, you buy 100 shares at the strike (minus the premium, your cost basis); then sell covered calls against them until the shares are called away — and start again.
What is my cost basis if assigned?
The put strike minus the put premium you collected. Selling covered calls afterwards lowers it further with each premium.
What is the full-cycle return?
If you’re assigned on the put and later called away on the call, your profit per share is (call strike − put strike) + put premium + call premium. This tool shows that as a dollar amount, a return on the cash you secured, and an annualised rate.
What’s the risk?
You can be assigned shares in a falling stock and hold them well below your cost basis, and your upside is capped once you sell calls. The wheel suits stocks you genuinely want to own.
Is anything sent to a server?
No — it computes in your browser.

More Finance & options tools

Covered call calculatorOptions profit calculatorIron condor calculatorBlack-Scholes calculatorImplied volatility calculatorExpected move calculatorMax pain calculatorRule of 16 calculatorCompound interest calculatorSavings calculatorHigh-yield savings calculatorCD calculatorAPY calculator401(k) calculator