Wheel Strategy Calculator

Sell a put; if you're assigned, sell a covered call. Enter both legs to see your cost basis and what each outcome pays.

Free, no sign-up. Bookmark this page to come back to it (Ctrl+D, or ⌘D on a Mac).

Step 1: sell a cash-secured put (example numbers)

Put strike$Put premium$

Put days to expirationdays

Step 2: if assigned, sell a covered call

Call strike$Call premium$

Call days to expirationdaysContracts

Premiums are per share. Assumes the call is sold right after assignment.

Cash to secure the put

$4,750

1 contract × strike × 100

Cost basis if assigned

$46.65

After the call premium: $45.95

The put expires worthless

Profit

$85.00

In 30 days

Return on cash

1.79%

Annualized 21.8% (simple)

No shares. You keep the premium and can sell another put.

Assigned, then the shares are called away

Total profit

$405.00

Over 60 days: both premiums + (call strike − put strike)

Return on cash

8.53%

Annualized 51.9% (simple)

Assigned, and the call expires

Premium collected

$155.00

Both options, over 60 days

Shares held, cost basis

$45.95

Per share. Sell another call and repeat

The shares' own gain or loss depends on where the stock is then, which this can't know.

Want this across every stock?

This calculator checks one trade you already found. SpreadVector's screener runs the first step of the wheel across 800+ stocks with weekly options and ranks the setups. Your first scans are free, with no card needed.

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How the wheel works

Step 1: sell a cash-secured put on a stock you'd be glad to own. If it expires worthless, keep the premium and sell another.

Step 2: if you're assigned, you own 100 shares per contract. Your cost basis is the strike minus the put premium. Sell a covered call above that cost basis.

Step 3: if the shares are called away, the cycle is complete and you start again with a put. If the call expires, you keep the shares and the premium, which lowers your cost basis again, and sell another call.

How the numbers are worked out

Returns are measured against the cash secured for the put (put strike × 100 per contract). Annualized figures multiply by 365 ÷ the days involved; they are simple, not compounded. Outcome B adds both premiums to the difference between the call strike and the put strike. The calculator can't know where the stock will be while you hold it, so outcome C shows the income and the cost basis, not a gain or loss on the shares.

Questions

Which stocks suit the wheel?

Ones you'd be comfortable holding through a drawdown, because assignment usually happens when the stock has fallen. Many wheel traders also look for stocks with weekly options, so there are expirations to choose from.

Why warn when the call strike is below my cost basis?

If the shares are called away below what they cost you, the premiums don't make up the difference and the cycle ends at a loss. Some traders accept that to exit a position; the calculator flags it so it's a choice, not a surprise.

Does this include dividends?

No. Dividends paid while you hold the shares would add to the return, and they can make early assignment of a covered call more likely just before an ex-dividend date.

More free calculators

Cash-secured put calculator →Credit spread calculator →

⚠These calculators use only the numbers you enter; no market data is looked up. Probabilities are estimates from the Black-Scholes model at the implied volatility you enter, and real prices often move differently. Results ignore commissions, fees, dividends, taxes and early assignment. SPREADVECTOR is an educational screening tool only. Results are not financial advice, investment recommendations, or solicitations to trade. Options trading involves substantial risk of loss and is not suitable for all investors. Past screening results do not predict future performance. You are solely responsible for your own trading decisions. Consult a licensed financial advisor before trading.

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