The seller’s arithmetic: what the premium yields if the stock goes nowhere, what you make if it gets called away (or assigned), both annualized, and where your breakeven sits. Add ?ticker=AAPL to prefill from a real delayed chain.
The two trades, honestly framed
A covered call sells someone the right to buy shares you already own: you keep the premium no matter what, cap your upside at the strike, and keep all the downside below your breakeven. A cash-secured put sells someone the right to sell you shares at the strike: you keep the premium, and if assigned you buy at an effective price of strike minus premium. They are the same bet from opposite ends — the wheel is just alternating between them.
The number that sells these strategies is the annualized yield; the number that matters is what happens when the stock moves more than the premium. Check the open-interest map and earnings calendar before writing anything, and treat every figure here as arithmetic, not advice.
Covered call FAQ
What does a covered call calculator show?
For a covered call it shows the premium collected, the return if the stock stays flat, the return if shares are called away at the strike, both annualized, plus breakeven and the downside cushion the premium provides.
How is the cash-secured put return calculated?
Premium collected divided by the cash collateral (strike × 100 × contracts), annualized over the days to expiration. If assigned, your effective buy price is the strike minus the premium.
What does "return if called" mean?
The total return if the stock finishes above the strike and your shares are sold at the strike: the capital gain up to the strike plus the premium, divided by your cost basis.
Are annualized returns guaranteed?
No. Annualizing compounds one period’s return across a year and assumes you could repeat it identically, which markets do not promise. Treat annualized figures as comparisons, not forecasts.
Does the prefill use live prices?
The optional prefill uses our delayed (~15 minutes) Cboe chain and picks a near-30-delta contract at the bid/ask midpoint. Every field stays editable, and you should check live quotes before trading.