Free Options Wheel Tool

Options Wheel Calculator

I’ve put together these calculators to help you understand the numbers behind the Wheel. Explore cash-secured put premiums, collateral requirements, effective purchase prices and covered call outcomes by changing the figures to match your own examples.

Explore the numbers behind your trades

I use the calculators below to illustrate the financial mechanics of each stage of the Wheel. You can adjust the share price, strike, premium and contract quantity to see how each input changes the result.

Calculations use standard US equity options contracts representing 100 shares each. All figures are in US dollars.

1. Cash-Secured Put Calculator

Calculate the collateral required, premium received and effective share purchase price if you are assigned.

Current market price of the underlying shares.
The price at which you agree to buy shares if assigned.
Premium received for selling one option contract.
Each standard contract represents 100 shares.

Your Cash-Secured Put Results

Cash collateral required $4,500.00
Total premium received $150.00
Effective purchase price per share $43.50
Premium return on collateral 3.33%
Strike compared with current share price 10.00% below market
Potential shares acquired if assigned 100
How I interpret this:

If assigned, you would buy shares at the strike price. The premium received reduces your effective purchase cost. The distance between the current share price and strike shows how far below the current market price your put is positioned. It does not represent a guaranteed safety margin.

2. Covered Call Calculator

Calculate potential call premium income and the overall result if your shares are called away at the selected strike.

Your average purchase cost per share.
The price at which shares may be sold if assigned.
Premium received for selling the covered call.
You need at least 100 shares per contract.

Your Covered Call Results

Shares required 100
Value of shares at purchase price $4,500.00
Total premium received $120.00
Effective share cost after premium $43.80
Potential profit if called away $620.00
Return on original share cost 13.78%
How I interpret this:

The potential result combines the difference between your purchase price and call strike, plus the premium received. A positive figure represents a potential profit; a negative figure represents a potential loss if your shares are called away at that strike.

Important risk information

These calculators are educational tools, not trading signals or investment recommendations. They show simplified outcomes before commissions, fees, taxes and other costs.

Cash-secured puts can result in substantial losses if the underlying shares fall significantly. Covered calls do not eliminate the risk of owning shares and limit some potential upside. Premium income is not guaranteed.

Returns shown are for the entered trade, not annualised returns. The covered-call calculation assumes the shares are called away at the selected strike. Actual option contract specifications may vary.

Risk notice: Options trading involves substantial risk and is not suitable for every investor. Cash-secured puts and covered calls can result in losses, including significant losses from owning shares that decline in value. Rolling does not eliminate losses or guarantee a profitable outcome. Premiums are not guaranteed income. The educational material on this website is general information only and is not personalised investment advice or a recommendation to buy or sell any security or options contract.