OPTIONS STRATEGY

Covered Call Calculator

Measure premium income, assignment return, and stock downside break-even.

Position inputs

Manual values work without a market-data connection.

Strategy summary

Expiration payoff metrics.

Premium income
$200.00
Downside break-even
$93.00
Max profit if assigned
$1,200.00
Assigned position value
$10,700.00
Return on cost basis
12.63%
Uncovered shares
0

Methodology

The result assumes the written call is covered by the available shares and is assigned at expiration. It excludes dividends, taxes, commissions, and early assignment.

How this calculator works

A covered call combines owned shares with a short call to collect premium while limiting upside above the call strike.

Formula or payoff

Premium income equals option premium × 100 × contracts; assigned profit includes stock gain to the strike plus premium.

Practical example

With shares at a $95 basis and a $105 call sold for $2, assignment caps the per-share gain at $12 before fees.

Risk and limitations

Shares can be called away and remain exposed to downside. Dividends and early assignment are not modeled.