Why is tracking net premium so important in the Wheel Strategy?

Tracking your net premium (the total of all premiums collected minus any premiums paid to close or roll positions) is the backbone of the wheel strategy because it directly determines your Adjusted Cost Basis — and your ACB determines every strategic decision you make.

Without accurate net premium tracking:

• You may sell a covered call below your actual break-even and lock in a hidden loss.
• You may panic-sell shares at a "loss" that is actually above your true ACB once premiums are accounted for.
• You cannot accurately calculate whether a roll is worth doing (is the net credit meaningful enough to justify the extension?).
• You cannot calculate your true annualized return on capital for the campaign.

Net premium is what converts the wheel strategy from "just owning stocks" into a systematic income-generation machine. It is the number that tells you how much your position has improved beyond a simple stock purchase.