Performance / TWR

Realized Return measures the income the strategy has actually produced since the baseline date — closed-position gains/losses plus premium kept on options that have expired, been assigned, or been bought back. Unrealized P&L on still-open positions is intentionally excluded.

Why ignore unrealized? For a covered-call / CSP strategy held to expiration or assignment, unrealized stock losses are noise that washes out at exit — the position closes neutral or positive when it eventually unwinds. Counting unrealized losses against the strategy's return rate would understate what it's actually producing. The numbers here reconcile 1:1 with the Realized G/L page over the same period.

The denominator (Avg Capital Deployed) uses Modified Dietz time-weighting so adding capital mid-period doesn't unfairly reduce the return rate. Set a baseline date and the account's value on that day, log every external deposit/withdrawal going forward, and the math works from that point. Dividends, premium income, and assignments are not cash flows — they're returns.