Read this first. WheelYield is an educational illustration, not investment advice or a recommendation to buy or sell any security.
Option premiums are not "free income": selling options obligates you to buy or sell shares and can result in substantial losses if the stock falls.
Figures are hypothetical, before commissions, fees, taxes and dividends.
The Numbers
If assigned at expiration
Scenarios at expiration
Stock at expiry Move Outcome P/L Return
Annualized figures simply extrapolate this one trade across a year (simple = return × 365 ÷ days; compounded assumes the identical return could be repeated back-to-back, which is rarely the case). They are not forecasts.
Important disclosures. This tool is for education only and does not constitute financial, investment, tax or legal advice. Options trading involves significant risk and is not appropriate for every investor; review the OCC publication Characteristics and Risks of Standardized Options . American-style options can be assigned early, particularly around ex-dividend dates. Past or hypothetical returns do not guarantee future results. Consult a qualified professional before acting.
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