Free Options Wheel Tool

Options Wheel Calculator

Put the numbers into perspective. Calculate potential cash-secured put premiums, collateral requirements, effective purchase prices and covered call outcomes.

Plan your Options Wheel trades

Use the calculators below to explore the financial mechanics of each stage of the Wheel. Adjust the figures to see how different strikes, premiums and contract quantities affect the results.

All calculations use standard US equity options contracts representing 100 shares each.

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%
Potential shares acquired if assigned 100
How to interpret this:

If assigned, you would buy shares at the strike price. The premium received reduces your effective purchase cost. This does not protect you from further losses if the share price falls.

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 to interpret this:

The potential profit combines the difference between your purchase price and call strike, plus the premium received. This assumes your shares are called away at the 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. Actual option contract specifications may vary.