Calculator · Cash-secured put
Wheel strategy calculator Price it before you place it.
Size cash-secured puts, covered calls, rolls and full wheel cycles — premium, annualized return, breakeven, probabilities and Greeks.Selling a 100 put for $2.00 earns 1.99% in 30 days — 24.3% annualized; breakeven $98.01. Odds of profit: 63.4%.
Premium you collect
$199.34
Annualized
24.3%
1.99% on capital in 30 days
Breakeven
$98.01
2% cushion before a loss
Probability of profit
63.4%
Assignment 51.1%
Capital secured
$10,000
Cash secured at the strike
Max loss
−$9,801
If the stock goes to $0
01
Set up the trade
Pick a strategy, pull a live quote and fill in the contract — the answer above updates as you type.
Underlying
Live quoteType a ticker and press Get: the live price, the 52-week range and the next earnings and ex-dividend dates land here.
Contract
02
Scenarios & odds
What the trade makes if the stock moves, the odds behind the answer above — the Greeks are folded below.
Scenario analysis
| Move | Price | P&L | Return |
|---|---|---|---|
| -20% | $80 | -$1,801 | -18% |
| -10% | $90 | -$801 | -8% |
| -5% | $95 | -$301 | -3% |
| Breakeven (-2%) | $98.01 | $0 | 0% |
| Flat | $100 | $199 | 2% |
| 5% | $105 | $199 | 2% |
| 10% | $110 | $199 | 2% |
| 20% | $120 | $199 | 2% |
Returns & risk
- Return on capital
- 1.99%
- Premium / dayNet premium spread over the days to expiration — the fairest way to compare expiries.
- $6.64
- Downside protectionHow far the stock can fall from the current price before the trade loses money at expiration.
- 2%
Probability
- Prob. of assignmentChance the short put finishes in the money and shares are assigned.
- 51.1%
- Expected move (1σ)One standard-deviation move by expiration: spot × IV × √(days/365). Price stays within ±1σ ~68% of the time.
- ± $5.45
- 1σ price range
- $94.55 – $105.45
04
Track every wheel trade — free
Pricing a trade is step one. Tracking it is where the income becomes real.
Create a free account to log your positions, watch live income analytics, and never lose track of a roll or assignment.
- Price it here
- Log it in one click
- Watch income, assignments and rolls
05
Worked example
The default scenario, computed with this tool’s own math — replace the inputs above with your trade.
You sell one $100.00 put for $2.00 a share with 30 days to expiry. The broker sets aside $10,000.00; after a $0.66 fee you keep $199.34 — 1.99% on that cash, about 24.3% a year if repeated. Below $98.01 at expiry the trade loses money; with 19% implied volatility the model gives it a 63.4% chance of profit.
- Cash securing the put
- $10,000.00
- Premium kept after fees
- $199.34
- Return on cash
- 1.99% · 24.3% a year
- Share-price breakeven
- $98.01
- Estimated probability of profit
- 63.4%
06
Common questions
What the numbers mean — and what they leave out.
- What does the wheel calculator compute?
- For a cash-secured put or covered call it shows net premium after commissions, return on the capital secured, simple or compounded annualized return, breakeven, downside cushion and max loss. With an underlying price it adds the payoff curve at expiration, the probability of profit and assignment, the expected move and the position Greeks. Roll mode compares a buy-back with the new contract, and Wheel mode chains a put and a call into one cycle.
- How is the annualized return calculated?
- Return on capital is the net premium divided by the cash secured (strike × 100 × contracts) or, for a covered call, the share cost basis. It is scaled to a year by 365 ÷ days to expiration, or compounded per cycle when the Advanced toggle is on. It is an estimate of what repeating the trade would yield, not a guarantee.
- What is the breakeven of a cash-secured put?
- Strike minus the premium received per share, plus commissions per share. Below that price at expiration the assigned shares are worth less than the cash you effectively paid for them.
- Where do the probabilities come from?
- From a lognormal price model with no drift, using the implied volatility you enter or the one backed out of your premium with Black-Scholes. They describe a statistical model of the market, not a forecast, and ignore earnings gaps and other jumps.
07
About the wheel strategy
The wheel is an options income strategy: sell cash-secured puts to collect premium, and if you're assigned the shares, sell covered calls against them — repeating the cycle.
This calculator shows the premium yield, annualized ROI and breakeven for each leg, so you can size cash-secured puts, covered calls and rolls with confidence before you place the trade.
Only selling a call on shares you own? The covered call calculator answers that on one page.
Read the wheel strategy guide08
The rest of the workbench
Every free tool, one click away — plus the terms behind these numbers.
Next steps
Plan the trade before you place it: the position size calculator shows how many shares or contracts fit your risk, the options profit calculator draws the payoff at expiry, the risk/reward calculator weighs the target against the stop, and the drawdown simulator shows how deep a run of losses can go. New to options? Start with the free lessons Why sell options instead of buy them, Reading an options chain and The Greeks, in plain English.
Terms behind the numbers
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