The Wheel simulator
Set up a cash-secured put, choose where the stock finishes, and follow the cycle through assignment, covered calls and call-away. The ledger on the right is the part worth watching: it tracks what you have actually kept, not what you collected.
Course catalogue99 lessons
- Sell put
Collateral posted
- Assigned
Shares acquired
- Sell call
Income on shares
- Called away
Capital released
The position
A label only. No live market data is fetched.
1 · Cash-secured put
Below the $95 strike, so you are assigned and the cycle continues.
2 · Covered call
Short put at expiration
The leg you opened. Below the strike, every dollar the stock falls is a dollar of loss . The premium only moves where that line crosses zero.
Ledger
$588.70
6.20% on $9,500 of collateral over 60 days
- Premium collected
- $390.00
- Commissions
- −$1.30
- Premium kept
- $388.70
- Realised P&L
- $388.70
- Open stock P&L
- $200.00
- Shares held
- 100
- Capital secured
- $9,500
- Adjusted basis
- $91.11
- Breakeven
- $91.11
Annualised, this is 37.7%, an extrapolation of one cycle across a year, not a forecast. It assumes you could repeat this result continuously, which nothing guarantees.
Trade journal
- Day 0Sell 1 × XYZ $95 put30 days out at $2.10. Broker holds $9,500 as collateral.$209.35
- Day 30Assigned. Buy 100 shares at $95XYZ finished at $92.00, below the strike. Assignment itself costs no commission at most brokers; the collateral becomes stock.−$9,500.00
- Day 30Sell 1 × $100 call against the shares30 days out at $1.80. Adjusted basis is now $91.11 a share.$179.35
- Day 60Call expires worthless, you keep the sharesXYZ finished at $97.00, below the $100 strike. The premium is yours and the shares are still yours, marked up $200 against the assignment price. Write another call and the cycle continues.
The theory behind it
- The Wheel StrategyThe full cycle: sell puts, take assignment, sell calls, repeat, and what it does to your cost basis.
- Cash-Secured Puts, From Cash to AssignmentMove the strike and watch the capital, the breakeven and the annualised return move with it.
- Covered Calls and the Upside You SellSet your cost basis, pick a strike, and see precisely which part of the upside you just sold.
This simulator models outcomes at expiration from the inputs you supply. It fetches no market data, and the prices you type are not quotes. Real results differ: assignment can happen early, spreads and commissions are charged on every leg, and a position rarely travels in a straight line to the outcome shown.