What is premium yield in options?

Premium yield is the return you earn on the capital you lock up for an options trade. Formula: (premium received ÷ collateral) × 100. For a $45 strike put with $0.85 premium, collateral is $4,500 and yield is 1.89%.

How do I annualize options yield?

Multiply the yield by (365 ÷ days to expiration). A 1.89% yield over 30 days annualizes to roughly 23%, letting you compare options with different expirations.

What collateral should I use for a cash-secured put?

Use strike price × 100 per contract (e.g., a $45 put ties up $4,500). For covered calls, use stock price × shares. That collateral is the denominator in premium yield.

Where can I find high-yield CSPs and covered calls?

Use the cash-secured put screener and covered call screener to filter by yield, delta, DTE, and liquidity, then plug the premium and collateral into this calculator.

Premium Yield Calculator

Premium yield is premium received ÷ capital at risk. Add DTE to annualize and compare CSPs and covered calls on the same basis.

Comparing trades? Run the CSP screener or covered call screener first, then use this tool to normalize yield and annualized return.

Premium received

Collateral / capital required

Days to expiration (optional)

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