Risk management for options sellers
Know what your options income strategy is actually risking before the market tells you.
A position and risk manager for premium sellers.
No account. No card. No sales call.
At a glance
- Tracks positions through rolls and assignments
- Read-only broker connection for the free X-Ray
- Never sells trade ideas or signals
The problem
Income strategies look wonderful until they are not, because the returns are visible weekly and the risk is invisible until one position destroys a year of premium.
Brokers show account value and nothing about assignment probability, concentration, correlation across positions, or what happens to the whole book in a fast decline.
Traders track it in spreadsheets that do not survive contact with rolling and assignment.
Who it is for
Covered call and put sellers
Retail options traders selling covered calls and cash-secured puts, or running the wheel.
Methodical spreadsheet users
Traders on accounts of 25k to 2m who track their book in spreadsheets that do not survive rolling and assignment.
Model your risk before it models you
Put in your account size, risk per trade, win rate and reward-to-risk. See your expectancy, your drawdown risk and whether your size is safe. Runs in your browser. No account, no card, no call.
Position size versus Kelly
Full Kelly maximises growth and is far too volatile to trade. Half-Kelly is the practical ceiling.
The losing streak you should plan for
Over 240 trades a year, a 10-trade losing streak is likely at 95% confidence. At 1.0% per trade that is a 9.6% drawdown — and it says nothing about whether the system is broken.
Take this with you
No email required. It is your result.
KofiOptions — risk model · 0.35R expectancy at 45.0% win rate, 2R payoff · 1.0% per trade vs 8.8% half-Kelly ceiling · Plan for a 10-trade losing streak (9.6% drawdown) Run it yourself: https://kofioptions.com
How it works
KofiOptions, from the first step to the result.
- 01
Connect your broker read-only
Start with the free Portfolio Risk X-Ray.
- 02
See your real exposure
Annualised return, downside in dollars if the market falls 10 percent, and concentration by name and sector.
- 03
Track the book continuously
Positions followed through rolls and assignments, with stress testing.
See the risk behind the premium
A position and risk manager for premium sellers running covered calls, cash-secured puts and the wheel.
Rolls and assignments tracked
Every open position is tracked through rolls and assignments, with correct cost basis.
Honest annualised return
Annualised return on capital is calculated honestly, including assigned shares.
Downside in a sharp drop
Aggregate downside exposure if the market drops sharply, and what a bad week does to the account before it happens.
Concentration by name and sector
Sector and single-name concentration across the whole book.
Assignment and buying power
Assignment probability by expiry, and buying power under stress.
Premium measured against risk
Positions where the premium is not compensating for the risk are flagged.
Questions people actually ask
- Does KofiOptions give trade ideas or signals?
- No. It never sells trade ideas or signals.
- What does the free Portfolio Risk X-Ray show?
- Annualised return properly calculated, total downside exposure in dollars if the market falls 10 percent, concentration by name and sector, and the three positions carrying risk out of proportion to their premium.
- How does it connect to my broker?
- The X-Ray connects to a broker read-only.
- How does it handle rolls and assignments?
- It tracks every open position through rolls and assignments with correct cost basis, and includes assigned shares when calculating annualised return on capital.
- Which risks does it measure?
- Aggregate downside exposure in a sharp market drop, sector and single-name concentration, assignment probability by expiry, and buying power under stress.
- Which strategies is it built for?
- Income strategies: covered calls, cash-secured puts and the wheel.
- What does it cost?
- The X-Ray is free. 29 dollars a month covers continuous tracking, roll analysis and stress testing, and 79 dollars a month covers multiple accounts, tax lot tracking and export.
- Why should I trust the risk and position-size model?
- It is plain arithmetic on the numbers you put in, worked out in your browser. Change any input and every figure updates, so you can check each one yourself.
Pricing
Start with a free Portfolio Risk X-Ray, then track continuously. It never sells trade ideas or signals.
Risk X-Ray
An honest picture of your current exposure.
- Downside exposure if the market falls 10 percent
- Concentration by name and sector
Tracking
For an open book of premium-selling positions.
- Continuous tracking
- Roll analysis
- Stress testing
Multi-account
For traders with more than one account.
- Multiple accounts
- Tax lot tracking
- Export
KofiOptions never sells trade ideas or signals. Prices in USD.
Model your risk before it models you
Put in your account size, risk per trade, win rate and reward-to-risk. See your expectancy, your drawdown risk and whether your size is safe. Runs in your browser. No account, no card, no call.
Open the free toolIt runs in your browser. KofiOptions never sees your inputs.