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Pro Tips · Jul 27, 2026

A ••• Annualized Wheel Yield Is Not a Forecast

A ••• premium on a •••-day ••• cash-secured put is ••• for the contract period and ••• when simply annualized—but assignment, downside and idle capital make that display very different from an expected return.

PRO#wheel#options-education#risk-math#cash-secured-put#covered-call
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Stock brokers working on the New York Stock Exchange floor in 1963
Thomas J. O'Halloran · U.S. Library of Congress · public domain via Wikimedia Commons (1963; cropped)

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YieldCove Desk

PRO

Published

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2 min read

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3 sources cited

Annualizing an option premium makes contracts with different expirations easier to compare, but it does not turn one premium into a forecast. A wheel scorecard should first show what actually exists: the premium received, the capital committed and the number of days in the contract.…

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