Optyldz

Compare annualized yields from selling cash-secured puts across different strike prices and expirations.Start Analyzing

The Methodology

Selling cash-secured puts is a strategy where you collect premium in exchange for the obligation to buy a stock at a specific price (strike) by a certain date. This tool helps you compare the risk-adjusted returns across different options.

Annualized Yield Formula

(Premium / (Strike - Premium)) × (365 / Days to Expiration) × 100The denominator is your net cost basis if assigned (strike minus premium received)

Key Concepts

Strike Price

The price at which you agree to buy the stock if exercised. Lower strikes = more out-of-the-money = lower risk but lower premium.

Days to Expiration

Time until the option expires. Longer duration = higher premium but capital is tied up longer. Annualized yield normalizes this.

Delta / % OTM

How far the strike is from current price. A 0.80 delta means strike is 80% of current price (20% out-of-the-money).

Risk vs Reward Tradeoffs

Higher Yield Comes From

  • →Strikes closer to current price (higher delta)
  • →Shorter expiration periods
  • →More volatile stocks

Higher Risk Comes From

  • →Strikes closer to current price (more likely to be assigned)
  • →Volatile stocks can drop significantly
  • →Capital tied up as collateral