📅 Annualized Return
Result
Comparison
Formula
What does this tool calculate?
The annualized return calculator scales short-term option premiums to a yearly equivalent so you can fairly compare puts, calls, and covered calls of different durations. The result is a theoretical p.a. rate — not a compounding guarantee.
Formula & methodology
| Variable | Bedeutung / Meaning |
|---|---|
| Prämie / Premium | Eingenommene oder bezahlte Optionsprämie |
| Kapital / Capital | Eingesetztes Kapital (Strike × 100 oder Aktienkurs × 100) |
| Haltetage / Holding days | Tatsächlich gehaltene Tage (DTE oder Ist-Haltedauer) |
| Ann. Rendite | (Prämie ÷ Kapital) × (365 ÷ Haltetage) |
Worked example
Prämie $200 auf eingesetztes Kapital $5.000, Haltedauer 30 Tage: (200 / 5.000) × (365 / 30) = 0,04 × 12,17 = 48,7 % p.a.
When do I use it?
When comparing options positions with different durations: annualizing normalizes everything to 365 days, making a 14-day put directly comparable to a 45-day put. Keep in mind: reinvestment and compounding are not automatically accounted for.
Frequently asked questions
Why annualize at all?
A 14-day put returning 0.8% sounds less attractive than a 45-day put at 2% — annualized the picture often reverses. Annualizing creates a uniform benchmark for yield comparison across different expirations.
Difference between covered call and cash-secured put?
For a covered call the premium is divided by the current stock price (capital tied up in the stock position). For a cash-secured put it is divided by the cash reserved (strike × 100). The capital base matters — make sure you use a consistent denominator when comparing.