Wheel strategy calculator and trade tracker

Wheel-strategy methodology, formulas, and worked examples

Formula

Wheel Score (Methodology v2.0, effective July 16, 2026) = 0.40 × yield_norm + 0.25 × liquidity_norm + 0.20 × delta_quality + 0.15 × iv_regime. Full source of truth: /methodology#wheel-score. Machine-readable version: /data/wheel-score-methodology.json.

Inputs

• Underlying ticker
• CSP and CC strike preferences
• Target delta band (default 0.20–0.30 for CSPs)
• Cash to deploy (per CSP cycle = strike × 100)
• Optional: assignment-acceptance flag (do you want to hold shares?)

Conservative worked example

SOFI at $14, 30-day $13.50 CSP (delta -0.22), premium $0.42. Methodology v2.0 sub-scores (each 0–1): yield_norm 0.28 (combined ~42% APY capped at 150%), liquidity_norm 0.80, delta_quality 0.90 (|-0.22 − 0.27| × 2 = 0.10 → 1 − 0.10 = 0.90), iv_regime 1.00 (IV proxy ~55% below the 80% threshold). Composite = 0.40×0.28 + 0.25×0.80 + 0.20×0.90 + 0.15×1.00 = 0.4920 → 49. Cycle return on collateral = 3.1%.

Aggressive worked example

PLTR at $32, 14-day $30 CSP (delta -0.34), premium $1.25. Methodology v2.0 sub-scores: yield_norm 1.00 (108% APY hits the 150% cap), liquidity_norm 0.75, delta_quality 0.86 (|-0.34 − 0.27| × 2 = 0.14 → 1 − 0.14 = 0.86), iv_regime 0.60 (IV proxy elevated at ~110%, half-way through the crash-penalty band). Composite = 0.40×1.00 + 0.25×0.75 + 0.20×0.86 + 0.15×0.60 = 0.8520 → 85. Higher score but materially higher assignment risk — illustrates why the v2.0 formula rewards IV regime as a headwind, not a tailwind.

Losing outcome example

After running the wheel on AMC for 6 months, you collected $1,200 in premium but the underlying fell from $35 to $5, leaving you with shares worth $500 against a cost basis (assignment) of $3,500. Net result: -$1,800 despite "winning" every cycle. Premium income does not protect against a sustained bear move in the underlying.

Commissions and slippage

Default commission: $0.65 per contract per leg.
Default slippage: 25% of bid-ask spread; wider for low-priced or thinly traded names.

What this calculator does NOT model

• Roll cost (rolling a losing CSP forward or down).
• Tax treatment of premium / cost basis adjustments.
• Account-type fit (naked options not permitted in standard IRAs).
• Sector concentration limits.

Related metric definitions

• Wheel score
• Annualized screen yield
• Liquidity score
• Assignment probability
• Effective cost basis

For the full mathematical methodology, see methodology. Educational only — not investment advice. See the disclaimer.