Chain a cash-secured put into assignment and then covered calls. See how the premiums reduce the cost basis, and the total return if the shares are called away. It runs in your browser. No account and no sign-in.
Puts run in order. Mark one as assigned, and make it the last put. Calls are sold only after that assignment. Mark at most one call as called away, and make it the last call. Premium is per share. Fees are the total dollars for that leg. The defaults are the worked example below.
OptionsLoop records the puts, assignments, and covered calls you actually trade and keeps the running cost basis for each wheel.
Track your wheel trades freeIf the shares are still held, the calculator stops at the basis and the premium. It does not invent a sale price. Single legs on their own are in the cash-secured put calculator and the covered call calculator.
The same cycle as the cost-basis guide, with 30 days on each leg and no fees. It is filled in above.
Looking at the last call alone would show a $70 gain. The wheel's $380 only appears when the put, both calls, and the stock sale are one position. That is the number a wheel tracker is for.
Each premium you keep is subtracted from the price you pay if the put is assigned. A $50 put sold for $1.20 gives an effective basis of $48.80 the moment you are assigned. Covered-call premiums collected after that reduce the basis further. After another $1.60 of call premium, the basis is $47.20. Selling the shares above that price is a gain on the whole cycle, not just on the last trade.
Total profit divided by the cash used to buy the shares, which is the assignment strike times 100 times the contracts. Profit counts every put and call premium, minus fees, plus the gain or loss from selling the shares at the call strike when they are called away. Days are the sum of each leg's days to expiration, treated as one leg after another. Annualized return is that total return times 365 divided by those days.
Then there is no stock and no cost basis to reduce. The premium is profit on the collateral the puts reserved. When the puts use different strikes, collateral is the largest amount reserved, because that is the most cash the cycle tied up. Covered calls are only available in the calculator after a put is marked assigned.
No. Premiums are counted when a leg expires, is assigned, or is called away, using the days and fees you enter. Closing a trade early, early assignment, dividends, and taxes are not modeled. Effective cost basis here is the tracking figure traders use to see a breakeven. It is not the basis reported on a tax return.
This calculator is educational content, not financial advice. It does not recommend a trade, a strike, or a stock, and it does not predict assignment. A wheel can lose much more than the premium if the shares keep falling after you buy them. The cost basis here is a tracking figure, not tax basis. OptionsLoop is a tracking tool, not a broker or investment adviser. Examples use made-up prices.