Tools
Month-by-month options cash
Selling an option is like collecting rent. The buyer pays you a premium when the trade fills. That number is known. The share price can still wander. This page only scores the rent.
Cash this month
$120
Known credit if you sell at this premium
Cash reserved
$14,800
Shares you already hold
Premium vs reserved
0.81%
This month's credit / capital parked
To collect $500 this month on 1 contract, you need about $5.00 of premium per share.
| Month | Premium cash | Running total |
|---|---|---|
| 1 | $120 | $120 |
| 2 | $120 | $240 |
| 3 | $120 | $360 |
| 4 | $120 | $480 |
| 5 | $120 | $600 |
| 6 | $120 | $720 |
| 7 | $120 | $840 |
| 8 | $120 | $960 |
| 9 | $120 | $1,080 |
| 10 | $120 | $1,200 |
| 11 | $120 | $1,320 |
| 12 | $120 | $1,440 |
This table is options premium — cash the buyer pays you when the trade fills. It is a known credit at that fill. It is not stock appreciation and not a forecast of the share price. If you are assigned, you buy or sell shares at the strike. The stock can move against the reserved capital by more than the premium.
SWE Financial uses software so you do not do this on a napkin. Encode a max-loss rule, then use the table to see whether the premium credit is worth the capital you park. Membership is the 90-day seat if you want that process coached.