How much capital do I need for the wheel strategy?

Per position: strike × 100 × contracts. For a $50 stock with 1 contract, you need $5,000. Same capital applies for the CSP (cash reserved) and CC (after assignment, you own the shares).

Is CSP and CC capital the same in the wheel?

Yes. When you sell a CSP, you reserve strike × 100. When assigned, you use that to buy shares. Those shares are the collateral for covered calls. So the capital is identical for both legs.

Wheel Capital Calculator

Capital for CSP = stock price × 100 × contracts. Same capital applies when assigned for the covered call leg.

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