Wheel Income Annualizer
Turn your typical wheel trade into a yearly picture. Enter average premium, DTE, and capital allocated to see monthly income, annualized ROC, and how assignments erode it.
Static return per cycle vs. annualized ROC
How a single cycle's return on capital compounds into an annualized figure once assignment drag is applied.
Methodology & how to use this
How the model works
Cycles per year = 365 ÷ DTE. Gross annual premium = premium × contracts × cycles. Assignments are modeled as an expected loss: cycles × (1 − win rate) × capital × avg drawdown %. Net annual = gross − expected assignment cost.
Where reality differs
Real wheel results are lumpy. A single tail event (a −20% gap) dominates a year of clean premium. The drawdown assumption is applied to the full allocated capital on each assignment cycle — i.e. it's the average % loss on the position size you actually put on when you get assigned. This tool gives a first-order estimate — treat the annualized ROC as a ceiling, not a forecast.
Keep running the numbers
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