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. Selling a call obligates you to sell at the strike if assigned. The covered call guide uses the same example.

Net premium = premium per share × shares − commission. Static return = net premium ÷ (stock price × shares). Annualized return = static return × (365 ÷ days to expiration).

Net premium

Enter shares, stock price, strike, premium, and days.

How to estimate a covered call

Enter the shares and the stock price. One equity option contract is usually 100 shares. The math still runs if the share count is not a multiple of 100.
Enter the strike, premium, days, and commission. Premium is per share. Commission is a dollar amount for the sale of the call.
Read premium, break-even, and the assignment result. Assignment profit is the stock gain or loss to the strike, plus the net premium. The stock can still fall below the break-even price.

Frequently asked questions

What does a covered call calculator measure?: You already hold the shares and sell a call against them. Net premium is the premium per share times the shares, minus commission. The break-even stock price is the stock price minus net premium per share. At $150 with a $3.50 premium and no commission, break-even is $146.50. If the call is assigned, the shares are sold at the strike, and you also keep the premium.
How is the annualized return calculated?: Static return is net premium divided by the stock position value. Annualized return multiplies that by 365 divided by the days to expiration. It assumes you could repeat the same premium and the same days for a year. It is not a forecast, and it ignores assignment and a move in the shares.
Is this investment advice?: No. The calculator is for general informational and educational purposes only. Selling a call obligates you to sell the shares at the strike if assigned. This page does not recommend that trade.

Related guides

How to estimate a covered call

Enter the shares and the stock price. One equity option contract is usually 100 shares. The math still runs if the share count is not a multiple of 100.

Enter the strike, premium, days, and commission. Premium is per share. Commission is a dollar amount for the sale of the call.

Read premium, break-even, and the assignment result. Assignment profit is the stock gain or loss to the strike, plus the net premium. The stock can still fall below the break-even price.

Frequently asked questions

What does a covered call calculator measure?

You already hold the shares and sell a call against them. Net premium is the premium per share times the shares, minus commission. The break-even stock price is the stock price minus net premium per share. At $150 with a $3.50 premium and no commission, break-even is $146.50. If the call is assigned, the shares are sold at the strike, and you also keep the premium.

How is the annualized return calculated?

Static return is net premium divided by the stock position value. Annualized return multiplies that by 365 divided by the days to expiration. It assumes you could repeat the same premium and the same days for a year. It is not a forecast, and it ignores assignment and a move in the shares.

Is this investment advice?

No. The calculator is for general informational and educational purposes only. Selling a call obligates you to sell the shares at the strike if assigned. This page does not recommend that trade.

Net premium

How to estimate a covered call

Frequently asked questions

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Net premium

How to estimate a covered call

Frequently asked questions

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