Derivatives & Volatility Harvest Pure Edge Computation

Options Covered Call & Cash-Secured Put Income Calculator

Model systematic option income yields across covered call overwriting and cash-secured put acquisition strategies with annualized ROI, downside protection cushions, and assignment profit.

Formula: Static Return % = (Premium / Capital) * 100; Annualized % = Static % * (365 / DTE); Breakeven = Stock - Premium

Model Parameters

Option Strategy Type

Choose covered_call (own shares, sell upside calls) or cash_secured_put (hold cash collateral, sell downside puts).

Underlying Share Price ($)

Current market price of the underlying equity or ETF.

Option Strike Price ($)

Target strike price for call or put option sale.

Option Premium Bid/Ask Mid ($)

Option contract premium collected per share.

Days to Expiration (DTE)

days

Contract expiration window in calendar days.

Number of Contracts (100 shares/contract)

contracts

Total option contracts traded (each standard equity contract controls 100 shares).

Outputs & Underwriting Summary

Calculation Status

OUT-OF-THE-MONEY CALL (INCOME HARVEST)

Verified Model

Immediate Premium Collected

$500.00

2 contract(s) (200 shares) | Strategy: covered_call

Annualized Return on Capital (AROC)

30.42% AROC

Static Yield: 2.5% over 30 DTE

Downside Breakeven & Underwriting Bounds

$97.50 breakeven per share

Downside Cushion: 2.5% | Max Upside Profit: $1500.00 | Capital at Risk: $20000.00

Selling 2 Covered Call contract(s) at $105.00 strike collects $500.00 in immediate cash. Downside breakeven is $97.50 (2.5% protection). Unassigned return is 2.5% (30.42% annualized over 30 days). Maximum profit if called away at strike is $1,500.00.

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