TRACKSTREAMAI · FREE TOOL
Options Premium Calculator
Built for option sellers — covered calls and cash-secured puts. Enter a trade and see the numbers that matter before you commit: premium collected, capital tied up, breakeven, and return on collateral.
1. Enter the trade
Strike price, premium received, and days to expiry — the three numbers every seller starts with.
2. Read the real numbers
Premium in your pocket on day one, collateral your broker locks up, and the breakeven you actually need.
3. Compare before you commit
The annualized pace is a measuring stick for comparing trades — not a forecast. Use it to rank, not to dream.
Annualized figure is a simple pace calculation (period return × 365 ÷ days). It is not a prediction — the same trade may not be repeatable.
How to read the numbers
Premium collected is money in your pocket on day one. Collateral is what the broker locks up for the duration: for a covered call it is the value of your shares, for a cash-secured put it is the cash reserved for a possible assignment. Breakeven is the price at which the trade turns from win to loss. None of this is a prediction about where the stock will go — it only describes the shape of the bet.
Why sellers care about “return on collateral”
A $2 premium looks small until you divide it by the $15,000 of cash sitting behind it — then you know it is 1.3% for 30 days, roughly a 16% annual pace if you could repeat it twelve times a year. Usually you can’t, because stocks move and assignments happen. The annualized number is a measuring stick for comparing trades, not a forecast.
A simple spreadsheet to track your puts, calls, assignments and effective cost basis. Enter your email below and download it instantly, right on this page — no waiting for an email to arrive. No spam, unsubscribe anytime.
A note on risk (please read)
Selling options caps your upside and concentrates your downside. Cash-secured puts can leave you buying a falling stock. Covered calls can have your shares called away right before a rally. This calculator is a general educational tool — it is not financial advice and does not recommend any specific trade. Never risk money you cannot afford to lose, and read your broker’s margin rules before trading real money.