Covered Call Calculator
Calculate the profit, breakeven, and return on a covered call options strategy.
See maximum profit, downside protection, and annualized yield.
Your data stays in your browser. We do not store, collect, or transmit any information you enter.
Covered Call Analysis
A covered call is an options strategy where you own shares and sell (write) a call option against them to collect premium income.
Key formulas:
Max Profit = (Strike Price − Purchase Price + Premium) × 100
Breakeven = Purchase Price − Premium
Downside Protection = Premium / Purchase Price × 100
Static Return = Premium / Purchase Price × 100
If Called Return = (Strike Price − Purchase Price + Premium) / Purchase Price × 100
How it works:
- You own (or buy) 100 shares of a stock
- You sell 1 call option at a strike price above current price
- You collect the option premium immediately
- If the stock stays below the strike, you keep the shares AND the premium
- If the stock rises above the strike, your shares are “called away” at the strike price
Best used when:
- You are mildly bullish or neutral on the stock
- You want to generate income from shares you already own
- You are willing to sell at the strike price
Each option contract = 100 shares.