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.
How to use it
Use the actual share basis, short-call strike, premium, and share count. Review the assigned outcome alongside the unassigned downside so the premium is not evaluated without the stock exposure that supports it.
Formula, payoff, and assumptions
Premium income equals option premium × 100 × contracts; assigned profit includes stock gain to the strike plus premium.
The assigned outcome assumes the shares and call contracts match. Dividends, early exercise, partial assignment, and transaction costs are outside this simplified scenario.
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.
Reading this result
Read premium as a reduction in stock basis and a trade-off for capped upside. The return at assignment is only relevant if you are comfortable selling the shares at the call strike.
Common planning mistake
Do not ignore dividend and early-assignment dates. A short call can be exercised before expiration, especially when it is deep in the money around an ex-dividend date.
Risk and limitations
Shares can be called away and remain exposed to downside. Dividends and early assignment are not modeled.
