Option Premium Annualized Return Calculator

Calculate the annualized return rate of option premiums by inputting option information via screenshots or text. Based on Duan Yongping's calculation method.

Prerequisites

Python 3.x (no additional dependencies, only uses standard libraries)

~/.longerian/scripts/option_yield_calculator.py

(automatically copied during installation)

Web search capability (used to obtain real-time risk-free interest rates)

Directory Convention

All files are stored in

~/.longerian/

(persistent, cross-agent):

~/.longerian/
├── scripts/option_yield_calculator.py   # Calculation script
└── data/option-yield/
    ├── option_input.json                # Input (temporary)
    └── option_result.json               # Output (temporary)

Core Formulas

Net Capital Occupied = Strike Price - Premium
Annualized Premium Return = (Premium / Net Capital Occupied) × (12 / Remaining Months to Expiration)
Total Annualized Return = Annualized Premium Return + Risk-Free Interest Rate

Process

Step 1: Receive Input

Users may provide:

Screenshots: Screenshots of option trading interfaces
Text: Free-form or structured option information

Step 2: Parse Option Parameters

Extract the following parameters from the input:

Parameter	Description	Default Value
underlying	Underlying asset code (e.g., AAPL, 700)	Required
market	Market (us / hk)	Automatically determined based on the underlying asset
option_type	Option type (put / call)	put
strike	Strike price	Required
premium	Premium (per share)	Required
months	Remaining months to expiration	Required
quantity	Number of contracts	1
shares_per_contract	Number of shares per contract	100 for US stocks, need to query for HK stocks

Automatic Market Determination Rules:

If the underlying code starts with a number (e.g., 700, 9988) → HK market
If the underlying code starts with a letter (e.g., AAPL, TSLA) → US market

Query for Shares per Contract in HK Market:

Search for "{underlying code} HKEX option shares per contract"
If search is successful → Use the queried number of shares
If search fails → Ask the user

If any parameters are missing, confirm with the user.

Step 3: Search for Risk-Free Interest Rate

Search for the corresponding risk-free interest rate based on the market:

Market	Search Keywords	Interest Rate Source
US	"US 1-year Treasury yield"	US 1-year Treasury yield
HK	"HK HIBOR rate"	Hong Kong Interbank Offered Rate

Data Timeliness Verification:

Check if the data date is within the last 7 days
If it exceeds 7 days → Warn the user that the data may be outdated
If search fails → Ask the user to manually input the current interest rate

Step 4: Run Calculation

Write to input file:

bash

# Write to ~/.longerian/data/option-yield/option_input.json

Run calculation:

bash

python3 ~/.longerian/scripts/option_yield_calculator.py

Read results:

bash

# Read from ~/.longerian/data/option-yield/option_result.json

Step 5: Output Results

Single Transaction Output Format:

📊 Option Premium Annualized Return Calculation
━━━━━━━━━━━━━━━━━━━━━━━
Underlying: AAPL
Market: US Stocks
Option Type: Sell Put
Strike Price: $195.00
Premium: $14.45/share
Expiration Date: 2026-01-16 (7 months remaining)
Quantity: 999 contracts (99,900 shares)

💰 Return Analysis
━━━━━━━━━━━━━━━━━━━━━━━
Net Capital Occupied: $180.55/share
Total Premium Income: $1,443,555.00
Annualized Premium Return Rate: 13.7%
Risk-Free Interest Rate: 4.3% (US 1Y Treasury, 2026-05-01)
Total Annualized Return Rate: 18.0%

Multiple Transactions Summary Output Format:

When there are multiple transactions with different strike prices, calculate each transaction individually and then summarize:

📊 Option Premium Annualized Return Calculation (Summary)
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

┌──────┬────────┬────────┬────────────┬──────────┬───────────────┬──────────┐
│ Optn │ Strike │ Premium │ Expiration │ Remaining│ Net Capital   │ Annualized│
│      │ Price  │        │ Date       │ Months   │ Occupied/Share│ Premium  │
├──────┼────────┼────────┼────────────┼──────────┼───────────────┼──────────┤
│ #1   │ $27    │ $1.544 │ 2026-09-18│ ~4.6 mths│ $25.456       │ 16.2%    │
│ #2   │ $33    │ $1.08  │ 2026-06-18│ ~1.5 mths│ $31.92        │ 27.1%    │
│ #3   │ $38    │ $0.975 │ 2026-05-15│ ~0.5 mths│ $37.025       │ 63.4%    │
└──────┴────────┴────────┴────────────┴──────────┴───────────────┴──────────┘

Risk-Free Interest Rate: 4.4% (US 1Y Treasury)

💰 Summary Return Analysis
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

Premium income per contract (including shares):
  #1: $1.544 × 100 shares = $154.40
  #2: $1.08 × 100 shares = $108.00
  #3: $0.975 × 100 shares = $97.50
  Total: $359.90

Total Net Capital Occupied: $25.456×100 + $31.92×100 + $37.025×100 = $9,440.10
Comprehensive Annualized Premium Return Rate: $359.90 / $9,440.10 × (12 / Average Months) = ~34%
Total Annualized Return Including Risk-Free Rate: ~38%

⚠️ Important: Calculation Rules

Premium income per contract = Premium per share × Shares per contract × Number of contracts (already includes shares)
When summarizing multiple transactions, total premium = sum of income from each contract (do not multiply by total shares repeatedly)
Comprehensive annualized return = Total premium / Total net capital occupied × (12 / Average remaining months)

Error Handling

Scenario	Handling
Premium >= Strike Price	Error: Unreasonable parameters
Remaining months <= 0	Error: Expired
Failed to search for risk-free interest rate	Ask user to input manually
Risk-free interest rate data exceeds 7 days	Warn user that data may be outdated
Screenshot cannot be recognized	Ask user to provide text information
Market cannot be automatically determined	Ask user whether it is US stocks or HK stocks
Failed to query shares per contract in HK market	Ask user how many shares correspond to each contract

option-yield

NPX Install

Tags

SKILL.md Content (Chinese)

Option Premium Annualized Return Calculator

Prerequisites

Directory Convention

Core Formulas

Process

Step 1: Receive Input

Step 2: Parse Option Parameters

Step 3: Search for Risk-Free Interest Rate

Step 4: Run Calculation

Step 5: Output Results

Error Handling