Wheel Strategy Calculator

Model one cash-secured put assignment followed by one covered-call phase.

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.