📖 How to Use the Covered Call Calculator
- Current Stock Price ($)
Enter the stock's current market price.
- Cost Basis ($)
Enter the average price you paid for each share.
- Number of Shares
Enter the number of shares you own. One covered call option contract typically represents 100 shares.
- Strike Price ($)
Enter the strike price of the call option. This is the price at which you agree to sell your shares if the option is exercised.
- Option Premium ($/share)
Enter the premium you receive for selling the covered call, on a per-share basis.
- Days to Expiration
Enter the number of days remaining until the option expires.
After Clicking "Calculate"
The calculator estimates your:
- Premium Income
- Maximum Profit
- Break-even Price
- Downside Protection
- Annualized Return
Example:
You own 100 shares purchased at $48. The stock is currently trading at $50. You sell a covered call with a $55 strike price and receive a $2.50 premium per share. Enter these values into the calculator to estimate your potential income and return.
Disclaimer: This calculator is provided for educational purposes only and should not be considered financial or investment advice.
