Calculating Annual Return

[Arnie Guitar]

I wrote some options today, and while calculating the annualized return, I got to wondering how others do it. I mean, do you split hairs, or is close good enough?

For example I wrote some August positions today.
so there are 25 days left until I have access to the money I had to put up to write them.
So is it;
option premium divided by margin requirement
divided by number of days
times 365?
Or do many of you go, "Well, it's about three and a half weeks 'til expiration, so it's return divided by 3 and 1/2 times 52."?

I realize the difference is very small, but I was just curious how others do it.

Failure is not falling down,
Failure is not getting back up.

 

[MTE]

That would be simple return, if you want compounded return then you divide the premium by margin, add 1, raise to the power of 365/25 and then take away 1.