Wheel Strategy calculator

For one full revolution, profit per share = put premium + call premium + (call strike − put strike). Multiplied by 100 you get the per-contract dollar profit. The capital denominator is the put strike × 100, since that's the cash committed as collateral for the put leg.

A complete wheel cycle stacks two premium collections on top of the share-price arc between the two strikes, all over the combined CSP+CC duration. Running just CSPs or just covered calls only collects one premium per cycle and earns less of the share-price arc — the wheel's annualised number compounds the income across both legs.

It's the yield on the put leg alone, assuming the put expires worthless every cycle and the wheel never starts. Premium ÷ strike, annualised. Useful as a benchmark — if the no-assignment yield is high, the wheel is profitable even when you don't actually hold the stock.

The calculator flags it as invalid because the share-price arc between the strikes is negative — selling the call at that level locks in a loss against your effective cost basis. In real trading this happens when a stock has cratered after assignment and the only meaningful call premium is below your basis; the cleanest fix is to wait for a recovery before writing calls.

No — this is a single-cycle projector that assumes the put runs to expiry, the call runs to expiry, and both legs are on the same underlying. Early assignment, rolling for credit and adjustments mid-cycle are too situational to model generically; use the per-leg calculators (cash-secured put + covered call) for those one-off decisions.