Covered call calculator
This estimates the premium from selling a call against shares you already hold, the stock price that breaks even after that premium, and the result if the shares are called away at the strike. You need at least as many shares as contracts times the multiplier. Extra shares stay uncovered. A short call without the shares is not this tool. Selling a call obligates you to sell at the strike if assigned. The covered call guide uses the same example.
Option shares = contracts × multiplier. Covered shares = the smaller of shares held and option shares. Uncovered shares = shares held minus covered shares. Net premium = premium per share × option shares − commission. Premium yield on covered stock value = net premium ÷ (stock price × covered shares). Maximum profit on the covered lot = profit if the shares are assigned at the strike. Maximum loss on the covered lot = covered stock value minus that lot's share of net premium, if the stock goes to zero. Break-even stock price = stock price minus net premium per option share
Maximum profit
Enter contracts, shares you hold, stock price, strike, premium, and days.
How to estimate a covered call
- Enter contracts and the shares you hold. Contracts are a whole number. One equity contract is usually 100 shares. You need at least as many shares as contracts times the multiplier. Extra shares stay uncovered. Open adjusted contract size only when the deliverable is not 100 shares.
- Enter the strike, premium, days, and commission. Premium is per share. Commission is a dollar amount for the sale of the call.
- Read covered shares, uncovered shares, and assignment. Maximum profit and maximum loss are on the covered lot. Premium yield is cash from the call on that lot. Uncovered shares are not capped by the strike. Annualizing a percent assumes the same setup could be repeated.
Frequently asked questions
- What does a covered call calculator measure?
- You already hold shares and sell call contracts against them. One standard contract covers 100 shares. 150 shares and one standard contract covers 100 and leaves 50 uncovered. Fewer shares than the contracts cover is not a covered call, so this calculator will not run that case. Net premium is the premium per share times the option shares, minus commission. The break-even stock price is the stock price minus net premium per option share.
- How is the annualized return calculated?
- Premium yield on covered stock value is net premium divided by the covered stock position. That is cash from the call, not profit if the shares are called away. Unchanged-price return uses the covered stock after the call is settled at the lower of today's price and the strike. Uncovered shares keep moving with the stock. Annualizing either figure multiplies it by 365 divided by the days to expiration. That scaling assumes you could repeat the same setup. It is not a forecast.
- Is this investment advice?
- No. The calculator is for general informational and educational purposes only. Selling a call obligates you to sell the covered shares at the strike if assigned. This page does not recommend that trade.
Related tools
- Cash-secured put calculatorThe other premium sale: cash set aside to buy shares.
- Break-even calculatorStock-only break-even without the option overlay.
- Position size calculatorSize the share lot before you sell the call.
- Market hours calculatorSee the U.S. session when expiration is a calendar date.
- All toolsBrowse every calculator by category.