Option Premium Yield Calculator
Compare option premium with the capital committed to a covered call, cash-secured put or defined-risk trade. The calculator shows premium yield for the selected holding period and a simple annualized equivalent so contracts with different expirations can be compared on a common basis.
Annualized yield simply scales this period's premium rate to 365 days. It is not a forecast and does not account for losses or gaps between trades.
How this tool works
Period yield = premium received ÷ collateral. Simple annualized yield = period yield × 365 ÷ days held. This is not a compounded or guaranteed return.
Example
Collecting $150 of premium against $5,000 of collateral produces a 3% period yield. Over a 30-day period, the simple annualized equivalent is about 36.5% before losses, fees and idle time.
Common questions
Is the annualized yield a forecast?
No. It only scales one period's premium rate to a 365-day basis and assumes nothing about future trades or losses.
What should I use for collateral?
Use the capital genuinely at risk or reserved for the position, such as secured cash for a put or share value for a covered call.