What is this Options Calculator?

This is an essential tool for options traders looking to quickly analyze the profitability of their trades. Our **options calculator** provides three key metrics: **Return on Investment (ROI)**, **Annualized ROI**, and **Premium per Day**. By entering your initial investment, the premium received (or paid), and the duration of the trade, you can get a clear picture of a trade's performance. This is particularly useful for comparing multiple options contracts or strategies side-by-side.

How It Works

The **options ROI calculator** uses simple formulas to provide accurate results. The **ROI** is calculated by dividing the premium by the initial investment, giving you a percentage return on your capital. The **Premium per Day** metric shows you the daily cash flow from the trade, which is a great way to evaluate the effectiveness of your strategy over time. Finally, the **Annualized ROI** projects your return over a full year, giving you a powerful metric to compare short-term options trades to long-term investments.

How to Use the Tool

1. Enter the **Initial Investment ($)**: The amount of collateral or margin required for your trade.
2. Enter the **Premium ($)**: The net profit or loss you received from the trade.
3. Enter the **Duration (Days)**: The number of days the trade was open.
4. Click the **Add Investment** button to compare up to three different trades.
5. Your results will appear automatically, helping you make informed trading decisions. All your data is saved locally for easy access on your next visit.