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Money Scale

Wheel Strategy Calculator & Tracker

Log every put and call; track cost basis and returns.

PrivateFreeSourcedReviewed

Not financial advice. All results are estimates based on the prices you enter. This tool does not use real-time market data: check live quotes with your broker before you trade.

XYZ adjusted cost basis

Example wheel

$43.68

/ share
Paid $48.00 · premiums cut $4.32 a share · 91 days
Net premium collected
$432

after buy-backs & fees

Total P&L
+$552

shares marked at $49.20

Annualized return
46.2%

on $4,800 capital

You own 100 XYZ shares at an average $48.00. $432 of net premium brings your real cost down to $43.68 a share, so XYZ can fall to that price before the wheel loses money. If your open call is assigned, you lock in about $632 in total.

Where XYZ stands

Shares held
100
Average price paid
$48.00
Adjusted cost basis
$43.68
Unrealized on shares at $49.20
+$120
Realized profit (premiums, dividends, shares sold)
+$432
Stock gain if open call is assigned
+$200

Not financial advice. Money Scale is not a broker, investment adviser or tax professional, and nothing here is a recommendation to buy or sell any security or option. These calculators are for education.

Estimates only. Every figure is a hypothetical estimate built from the numbers you type in. Results ignore taxes, bid-ask spreads, early assignment, margin requirements and anything else you don't enter. Annualized returns assume a trade could be repeated all year, which is not guaranteed. Past or hypothetical results don't predict future returns.

No real-time market data. These tools don't pull live stock or option prices. Quotes change constantly, so confirm current prices, premiums and fees with your broker.

Options involve risk and aren't suitable for every investor: a covered call or cash-secured put can still lose most of the stock's value. Read the OCC's Characteristics and Risks of Standardized Options before trading options.

Your numbers

This is an example wheel. Edit it to try things out, or start your own. Your wheels save in this browser only; nothing is sent to us.

$49.20

Starting shares, fees & dividends0 starting shares · $0.65 fee · $0 dividends

Leave at 0 if you started by selling a put.

0 shares

$0.65

$0

XYZ trade log

SoldExpiresTypeStrikeContractsPremium / shOutcomeBuy-back / shDelete
—
—
—
—

Rolled a position? Log the buy-back as "Bought back" with its cost, then add the new option as its own trade.

Next steps

The wheel strategy tracker keeps the one number brokers don't: your adjusted cost basis after every put and covered call. Log each option you sell (date, strike, premium, and whether it expired, was bought back, was assigned or was called away) and it tracks shares held, net premium collected, realized and unrealized profit, and your annualized return on the capital the wheel needed. Run several tickers side by side. Your trades save in this browser only and export to CSV.

How this calculator works

  1. Start from the example wheel to see how it works, then click 'Start my own wheel' and enter the ticker and today's share price.
  2. If you already owned shares before the first trade, enter them (and their cost) under 'Starting shares, fees & dividends'. Add your commission per contract too.
  3. Click 'Add trade' for every option you sell. Mark each one as open, expired worthless, bought back (with the buy-back price), assigned, or called away.
  4. When a put is assigned, the tracker adds the shares at the strike. When a call is assigned, it sells them at the strike and books the gain.
  5. Read your adjusted cost basis: the price the stock can fall to before the whole wheel loses money. Update the share price whenever you check in.

net premium = Σ (premium − buy-back) × 100 × contracts − fees adjusted cost basis = average share cost − (net premium + dividends) ÷ shares held return = (realized + unrealized P&L) ÷ max capital committed annualized = return × 365 ÷ days since first trade

Every premium you collect on a ticker lowers what the shares really cost you. Capital committed is the most cash the wheel ever needed at once: put collateral (strike × 100) or the cost of the shares you hold. Called-away shares are sold at their average cost, so the gain on them is realized immediately.

premium
Premium received per share on each option sold
buy-back
Price paid per share to close an option early (0 if it expired or was assigned)
shares held
Starting shares + assigned puts × 100 − called-away calls × 100

Frequently asked questions

What is the wheel strategy?

A repeating cycle of two option trades. You sell cash-secured puts on a stock you'd like to own. If you're assigned, you sell covered calls on the shares. If the shares are called away, you go back to selling puts. Every step collects premium.

How do you calculate cost basis on the wheel?

Start with the price you paid when the put was assigned, then subtract every dollar of net premium you've collected on that stock, per share. Assigned at $48 after collecting $4.30 a share in premiums, your adjusted cost basis is $43.70. Brokers usually show only the $48, so track it yourself.

How do you calculate wheel strategy returns?

Add up net premiums, dividends and any gain on shares called away, then divide by the most capital the wheel ever needed (put collateral or the cost of the shares). Annualize with × 365 ÷ days since the first trade. The tracker does this for each ticker.

What happens if the stock falls below my cost basis?

You have an unrealized loss, just like any stock owner. You can keep selling calls at or above your adjusted basis (smaller premiums, but no locked-in loss), sell calls below it (more premium, but you lock in a loss if called), or hold and wait. Premiums lower the break-even; they don't remove the stock's risk.

Where is my wheel data saved?

Only in your browser's local storage on this device. Nothing is sent to Money Scale. Use the CSV button to keep a copy or move it to a spreadsheet.

Sources used in this calculator

Reviewed by the Money Scale editorial team. How we source our data

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