Track and compare return on investment across your options positions.
A 'good' ROI depends heavily on the strategy and duration. For short-term options trades (under 30 days), many traders target 2–5% ROI per trade. What matters more is the annualized ROI — a 3% ROI on a 14-day trade annualizes to over 78%, which is strong compared to most asset classes.
Annualized ROI scales your trade's return to a full year, allowing fair comparisons between trades of different durations. A 2% return in 10 days annualizes to ~73%, while a 10% return in 180 days annualizes to ~20%. Annualized ROI helps you prioritize which trades best use your capital over time.
Premium per Day is the daily cash flow generated by your position — the total premium divided by the trade duration. It's useful for theta-based strategies (selling covered calls or cash-secured puts) where you want to know how much time value you collect each day.
Stock ROI is straightforward: gain divided by cost. Options ROI uses the collateral or margin required as the denominator, not the option premium itself. This reflects your actual capital at risk — especially important for strategies like cash-secured puts where you tie up significant buying power.
Not directly — that's why annualized ROI exists. A 30-day trade with 3% ROI and a 60-day trade with 5% ROI look similar on raw ROI, but annualize to ~36% vs ~30%. Always use annualized ROI when comparing trades with different holding periods.