Wheel Strategy ROI Calculator
Estimate your annual income, yield percentage, and per-trade returns from selling cash-secured puts and covered calls.
Frequently Asked Questions
What is the wheel strategy?
The wheel strategy involves selling cash-secured puts until assigned, then selling covered calls on the assigned shares until called away, and repeating. It generates income from premium collection on both sides.
What annual return can I expect from the wheel strategy?
Returns vary based on stock selection, strike prices, and market conditions. Conservative estimates are 15-25% annually, while more aggressive approaches may target 30-50%. However, returns are not guaranteed and involve risk.
How much capital do I need for the wheel strategy?
You need enough to buy 100 shares at your strike price. For a $25 stock, that's $2,500 per contract. Most traders start with at least $5,000-$10,000 to have some diversification.