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Covered call calculator

See the breakeven, returns and downside protection of a covered call.

Runs 100% in your browser
Breakeven
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Max profit (if called)
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If-called return
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Static return
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Annualised (if called)
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Downside protection
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How to calculate covered call returns

  1. Enter your shares. Type your cost basis per share and how many shares (multiples of 100).
  2. Enter the call you sold. Add the strike, the premium received and days to expiration.
  3. Read the returns. See breakeven, if-called and static returns, annualised yield and downside protection.

Covered calls: income vs upside

Selling calls against stock you own turns a holding into an income position, at the cost of capping gains at the strike. It pairs naturally with the wheel strategy (sell puts to acquire shares, then sell calls against them). To check the standalone option leg, use the options profit calculator.

Educational tool only — not financial advice. You retain full downside risk in the stock below breakeven. Options trading carries a high level of risk.

Frequently asked questions

What is a covered call?
A covered call is owning 100 shares of a stock and selling one call option against them. You collect the premium; in exchange you cap your upside at the strike, because the shares can be "called away" if the stock finishes above it.
What is my breakeven and downside protection?
Breakeven is your cost basis minus the premium received. The premium also cushions losses — downside protection is the premium as a percentage of your cost basis.
What is “if called” vs “static” return?
The if-called return assumes the stock finishes above the strike and your shares are sold at the strike. The static return assumes the stock is unchanged and you simply keep the premium. Annualised scales the if-called return to a yearly rate.
What is the main risk?
You still own the stock, so you bear its full downside below your breakeven, while your gains are capped at the strike. A covered call trades upside for income.
Is anything sent to a server?
No — it all runs in your browser.

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