Wheel Strategy Calculator
Model a simplified wheel cycle that starts with a cash-secured put and continues with a covered call after assignment. Enter the put strike and premium, then the covered-call strike and premium, to estimate effective share basis, total cycle profit if called away and return on secured cash.
Simplified one-cycle model: short put is assigned, then shares are called away at the covered-call strike. Taxes, fees, dividends and the time between legs are excluded.
How this tool works
Effective assigned basis = put strike − put premium. If the shares are later called away, total profit per share = put premium + call premium + call strike − put strike. Return on secured cash divides total cycle profit by the cash reserved at the put strike.
Example
Selling a $50 put for $1.25 and, after assignment, a $55 call for $1.00 creates a $48.75 effective basis. If the shares are called away at $55, the simplified cycle profit is $7.25 per share before fees and taxes.
Common questions
Does this assume the put is assigned?
Yes. The full-cycle result assumes assignment at the put strike and a later covered-call exit at the call strike.
Does it include time between cycles?
No. It reports the economics of one simplified cycle. Use your actual holding period when comparing annualized returns.