Guide · The Wheel
How to Track Wheel Strategy Cost Basis (Puts, Assignment, Covered Calls)
The wheel looks simple on paper: sell cash secured puts until assigned, then sell covered calls until the shares are called away. Tracking what you actually made is not. This guide shows how cost basis moves through each step, and how to keep it right in an options trading journal.
Why wheel cost basis gets messy
- Rolls split one idea into several trades with credits and debits.
- Assignment turns an option into a stock lot — your broker shows the strike, not your real basis.
- Several lots on one ticker each carry a different basis.
- One call against 200 shares only calls away part of the position.
The formula
Total wheel P&L = all premium collected + realized stock gain or loss + unrealized gain on shares still held.
Worked example
| Step | Cash | Position |
|---|---|---|
| Sell 1 KO $60 put, 35 DTE | +$120 premium | No shares yet |
| Put assigned at $60 | −$6,000 stock cost | 100 sh · basis $58.80 |
| Sell 1 KO $62 call | +$90 premium | Basis $57.90 |
| Call expires worthless, sell $62 call again | +$80 premium | Basis $57.10 |
| Called away at $62 | +$6,200 proceeds | Cycle complete |
Premium collected: $120 + $90 + $80 = $290. Stock gain: $6,200 − $6,000 = $200. Total wheel P&L is $490 on $6,000 of capital. If the cycle took 90 days, that is about 8.2% for the period, or roughly 33% annualized (8.2% × 365 ÷ 90). Your broker would show a $200 stock gain and three separate option trades — the wheel view is what tells you the campaign worked.
Common tracking mistakes
- Counting stock cost as a loss of income. Buying shares at assignment is capital moving, not a losing trade.
- Forgetting earlier puts. Premium from puts before assignment lowers your basis too.
- Selling calls below adjusted basis by accident. Know your number before you pick a strike.
- Rolling at a debit to avoid assignment. It often just defers the loss — see the Options Playbook.
How OptionsHub tracks it automatically
The Wheel Hub builds campaigns from your ledger. When a put is assigned it creates a linked share lot at the strike, keeps the full put credit, and lowers your adjusted basis with every call you sell. Partial call-aways close only the shares that were called. Standalone puts that were never assigned stay in your trade ledger, so only true wheels appear. Import trades from any brokerage via CSV/Excel — see pricing, or compare us in OptionsHub vs Options Tracker.
FAQ
Does premium from puts that expired before assignment count?
If they were on the same ticker in the same campaign, most wheel traders include them — they are income earned while waiting to own the stock. OptionsHub counts earlier puts on a ticker toward the wheel once it is assigned.
Is adjusted basis the same as my tax basis?
No. Adjusted basis is a decision tool for picking call strikes. Tax rules for option premium and assigned shares differ by country — use your broker's tax statements for filing.
What if I only sell one call against 200 shares?
Only 100 shares are called away. The remaining lot stays open with its own basis, which is why tracking per lot matters.
Track your wheel without a spreadsheet
Import from any brokerage via CSV/Excel and let OptionsHub keep the adjusted basis right.
Start free