Income & Yield
Wheel Strategy Calculator
Model one Cash-Secured Put assignment followed by one covered-call phase.
Research put-selling candidates
Use your model as a starting point, then explore put-selling candidates on Market Chameleon. Your calculator inputs stay here.
The provider labels this screener “Naked Puts.” A cash-secured approach reserves cash for assignment; the screener does not reserve it for you. Premium features may require a subscription.
Track every phase with one ledger
Sell a $40 put for $1.50, buy 100 shares for $4,000 on assignment, then sell a $42 call for $1. If the shares are called away at $42, total cash is $150 − $4,000 + $100 + $4,200 = $450 before costs. The call’s premium alone is not the result of the wheel sequence.
If the call expires and shares are instead worth $32, remaining stock value is $3,200. The total economic result is $150 − $4,000 + $100 + $3,200 = −$550. The calculator should be read alongside the current stock mark and any open option liability.
Add stock sales, repurchases, rolls, actual dividends and fees when they occur. A cash-flow break-even per share is useful for performance review, but does not establish tax basis under every situation. Early assignment can also change dividend entitlement.
Annualizing a short period’s premium yield assumes repeatable opportunities and ignores changing prices, capital use and losses unless explicitly modeled. Compare full-period total return and drawdown rather than treating the wheel’s cycle as guaranteed to repeat profitably.
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Reviewed . Examples are illustrative; verify exact contract and broker terms.
References: OIC: cash-secured puts; OIC: covered calls.
About this calculator
How to use this tool
This models one completed put phase that ends in assignment, then a Covered Call. Choose held to mark remaining shares at the ending price, or called to dispose of them at the call strike. The premium entries cover these two phases only.
Adjusted basis is strike less net premiums and is not tax cost basis. Total return uses gross original put assignment cash. This does not simulate repeated cycles, financing, dividends or reinvestment.
A called outcome is an assumed scenario, not an assignment prediction. Holding stock below the adjusted basis remains a loss even when several premiums have been collected.
Worked example
A $100 assignment, $3 put premium and $2 call premium gives a $95 economic basis before fees. If shares end at $102, total P/L is $700 per 100 shares.
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Model references and conventions
365 calendar days per year. Continuous rates for theoretical pricing. All examples are illustrative.
