Methodology
How YieldTerminal calculates and explains a plan
YieldTerminal produces educational estimates from the values entered by the user and available market data. Results can differ from broker quotes because option prices, spreads, fees, dividends, volatility, and assignment risk change continuously.
Capital required
Cash-secured puts generally reserve strike price × 100 × contracts. Covered calls generally require 100 owned shares per contract.
Premium collected
Option premium per share × 100 × contracts. Premium is not the same as realized profit while the position remains open.
Breakeven
For a cash-secured put: strike minus premium per share. For a covered call: share cost basis minus premium per share.
Profit captured
Estimated open profit divided by original premium collected. A 50% marker is a review prompt, not an automatic instruction.
Income Flow
Saved positions are grouped by expiration week. Concentration warnings describe scheduling and exposure patterns; they are not predictions.
Important limitations
Calculations do not guarantee execution prices or outcomes. Users should confirm all values with their broker and consider commissions, taxes, early assignment, liquidity, dividends, and personal risk tolerance.