Income & Yield
Annualized Options Yield Calculator
Compare simple extrapolation with hypothetical compound annualization.
About this calculator
How to use this tool
Simple annualization multiplies the holding-period return by 365 / days. Compound annualization assumes reinvesting at the identical rate each period. Neither is a forecast.
Short-period returns extrapolate dramatically; repeating option premiums does not eliminate losses, transaction costs or time out of the market. Compare the actual holding-period return first.
Worked example
A 2% return over 30 days gives 24.33% simple annualization and about 27.24% compounded if that rate could repeat.
Related tools
Model references and conventions
365 calendar days per year. Continuous rates for theoretical pricing. All examples are illustrative.
