Cash-secured puts & covered calls — know your max profit, breakeven, and annualized return before you place the trade.
Max profit
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Breakeven
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Return on capital
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Annualized return
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Capital required
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Max loss
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Payoff at expiration
Profit zoneLoss zoneBreakevenStrike
If it expires worthless
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If you're assigned
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Brokerage affiliate links go here — "Start wheeling with $0 commissions" etc.
Educational tool only — not financial advice. Options involve risk, including possible loss of principal. Premiums shown are per-share; one contract = 100 shares. Annualized return assumes you can repeat similar trades all year, which isn't guaranteed.
How the wheel works (30-second version)
Step 1 — Sell a cash-secured put below the current price. Keep the premium if the stock stays above the strike.
Step 2 — Get assigned? Good. You now own 100 shares at the strike, minus the premium you already collected.
Step 3 — Sell covered calls above your cost basis. Keep the premium; if shares get called away above the strike, you profit on the stock too.
Repeat. Premium income compounds while you wait for the right exit.
Track your wheel (free spreadsheet)
Log every put, call, assignment, and dividend — the template totals your premium, P/L of sales, and adjusted cost basis automatically. Duplicate the tab per stock.