This is the PremiumGuardHQ calculation reference. Every formula the platform runs on your broker data is documented here, with the source-of-truth in production code. No black box, no proprietary fudge factors. If a number is on your dashboard, it came from one of these formulas.
These are the only three numbers a wheel trader needs to trust. Every cycle PremiumGuard detects produces exactly these three values, computed from your raw trade data.
totalPremiumReceived − totalPremiumCosts Sum of credits from sold options, minus debits from bought options. Includes both opening and closing legs.
Why it matters The unearned-income meter. Tells you what the market paid you to take risk, before any assignment math.
cycle-detector.ts equityProceeds − equityCost Sale proceeds of shares sold minus the cost basis of shares acquired (via buy, put assignment, or call exercise).
Why it matters What the underlying did to your book. Captures whether assignments hurt you or whether shares appreciated through the cycle.
cycle-detector.ts premiumPl + equityPl The cycle’s real outcome. Combines what you earned from options with what the underlying cost or gave you.
Why it matters The single number a wheel trader can trust. Brokers obscure this by adjusting cost basis for premiums received and wash sales. PremiumGuard never does.
cycle-detector.ts:44
Each value is computed in decimal.js arbitrary-precision arithmetic. No
floating-point drift, no rounding errors at scale.
PremiumGuard doesn’t track individual trades. It tracks cycles: every option sale, every assignment, every closing leg gets stitched into the wheel or standalone position it belongs to. P/L lives on the cycle, never on the trade.
wheel A multi-leg cycle that holds shares plus the option activity tied to them. Created when a put is assigned or shares are bought into an open option position. Closes when shares fall below 100 (the call-writing floor).
zero_duration A cycle that opens and closes without shares ever changing hands. The classic case: sell a put, it expires worthless, premium booked. No equity leg, no assignment.
standalone A bought-option position not tied to an existing wheel. Long calls and long puts held outright. Tracked separately so hedges and speculation never pollute wheel P/L.
Each row from your broker feed is mapped to exactly one of these events before the cycle engine processes it. Everything else (transfers, fees, dividends, splits) is filtered out as non-trading account activity.
equity_buyequity_sellsell_call_to_opensell_put_to_openbuy_call_to_openbuy_put_to_openbuy_to_closesell_to_closecall_assignedput_assignedcall_expiredput_expiredcall_exercisedput_exercisedWhen multiple trades share a date (the assignment-then-sell scenario, the buy-to-cover-then-sell-to-open roll), priority decides which the engine sees first. Assignments always process before sells so the wheel knows about the new shares before they’re traded.
assignment First — new shares must register before sells exercise Option exercised into shares buy Equity purchase buy_to_open New long option position sell_to_open New short option position sell Equity sale buy_to_close Close a short option sell_to_close Close a long option expiration Last — settles after all trades Not your current exposure. Not your average exposure. The peak dollar amount the platform observed at any moment between the cycle’s open and close. PremiumGuard walks each cycle’s trades chronologically and tracks the running notional, recording the maximum.
For each trade in the cycle, ordered by date + action priority, apply the delta. Track the running total. Clamp at zero (CAR is never negative). Record the peak.
| Event | Delta | Note |
|---|---|---|
sell_put_to_open | + strike × qty × 100 | Full notional obligation to buy if assigned. |
sell_call_to_open | + strike × uncovered × 100 | Covered contracts add nothing. Only naked / uncovered exposure counts. |
put_assigned | − strike × qty × 100 | Obligation fulfilled; shares received. |
call_assigned | − strike × qty × 100 | Shares called away. |
buy | + total cash deployed | Equity bought outright. |
sell | − proceeds | Equity sold; clamps at zero, never negative. |
Sell a $180 put. Get assigned. Cover with a $185 call. Get called away. The peak observed
exposure becomes the cycle’s maxCapitalAtRisk.
sell_put_to_open 1× AAPL put, strike $180 + 180 × 1 × 100 = +$18,000 put_assigned Put exercised, 100 shares received − 180 × 1 × 100 = −$18,000 sell_call_to_open 1× covered call, strike $185 + $0 (covered — no notional) call_assigned Shares called away at $185 − 185 × 1 × 100 (clamped at 0) maxCapitalAtRisk $18,000 The unique math at the heart of the platform. PremiumGuard takes your closed-cycle profits, nets previous withdrawals, and reconciles against an equity gap. The result is the largest dollar amount you can withdraw without eroding the base capital that’s producing your income.
Closed-cycle profits − Previous withdrawals Target equity − Account value Account value is at or above target. No shortfall to fill, so the full profit is yours.
No throttle. Take the full gross.
Below target, but realised profits exceed the gap. Pay back the gap, keep the surplus.
Profits exceed gap. Take the difference: $15,000 − $7,000.
Below target, and profits do not cover the gap. Throttle the withdrawal.
Profits below gap. Throttle to 50%: $15,000 × 0.50.
Brokerages reshape cost basis for wash sales and premiums received, which is why the number on your broker screen often disagrees with what your wheel actually did. PremiumGuard ignores those adjustments and applies one of three deterministic formulas, based on how the shares were acquired.
weightedAvgCostBasis When you add to an existing share position, cost basis re-averages across all shares held. PremiumGuard computes the weighted mean using existing shares + new shares.
(existingShares × existingAvg + newShares × newPrice) ÷ totalShares 100 sh @ $30 avg. Buy 200 more @ $25.
(100 × 30) + (200 × 25) = 3,000 + 5,000 = 8,000 8,000 ÷ 300 sh = $26.67 / share assignmentCostBasis When a cash-secured put is assigned, the strike price is your cost. The premium you collected stays in Premium P/L — it does not lower the cost basis.
cost = strikePrice Sold $50 put for $200 premium. Assigned.
cost basis = $50 / share Premium of $200 stays in totalPremiumReceived exerciseCostBasis When you exercise a bought call into shares, your cost per share is the strike plus the premium you paid (amortized across the share count).
cost = strike + (premiumPaidTotal ÷ shareCount) Bought call $15 strike for $200 total premium. Exercised.
$15 + ($200 ÷ 100 sh) $15 + $2.00 = $17.00 / share Every number on your dashboard traces back to a formula on this page and a row in your broker history. If a calculation surprises you, the source is recoverable.
Methodology questions? Email support@premiumguardhq.com. Engineering answers, not marketing.