See your return on capital, annualized yield, breakeven, and downside cushion before you sell a put — instantly. Built for wheel traders.
Return on capital = premium ÷ strike. Annualized = return on capital × (365 ÷ days to expiration). Breakeven = strike − premium (your effective cost basis if assigned). Downside cushion = how far the stock can fall from today before you start losing money. Figures exclude commissions and assume one standard 100-share contract per put.
Enter the stock's current price, the put strike you're selling, the premium you'll collect per share, and the days until expiration. The calculator instantly shows the income you keep, the cash you must set aside, your return on that capital, the annualized equivalent, your breakeven, and how much cushion you have if the stock drops.
A cash-secured put (CSP) is the first leg of the wheel strategy. You sell a put and hold enough cash to buy 100 shares per contract at the strike. You keep the premium no matter what. If the stock stays above the strike, the put expires worthless and you keep the full premium. If it falls below, you're assigned the shares at the strike — at an effective cost of strike minus premium — and you start selling covered calls.
Return on capital is the raw yield for the trade (premium divided by the capital you secured). Annualized return scales that to a yearly rate so you can compare a 7-day put against a 45-day put on equal footing. Most wheel traders target roughly 15–35% annualized, but higher annualized numbers usually mean higher-delta, higher-assignment-risk strikes.
Breakeven is the price where the trade turns negative — it's also your cost basis if you're assigned. Downside cushion tells you how far the stock can fall from today before you lose money. A bigger cushion is safer but pays less premium; that trade-off is the core decision in put selling.
Tradevada tracks every cash-secured put automatically from your broker — real return on capital, annualized yield, assignment rate, and full wheel cycles across your whole account.
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