Covered Call Calculator
Enter your stock price, strike price, and call premium to see max profit, max loss, and breakeven for a covered call.
Covered Call Inputs
Price you paid (or current market price) per share
Strike price of the call option you are selling
Option premium collected per share (contract = 100 shares)
Used to calculate dollar totals (1 contract = 100 shares)
Enter values on the left and click Calculate
Results will appear here
Max Profit / share
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Max Loss / share
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Breakeven Price
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per share
Strategy Summary
Return Metrics
Return if Called
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Premium Yield
Downside Protection
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Max Return / Risk
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Profit/Loss at Expiration
Each bar shows P&L per share at a given stock price at expiration.
Summary
Enter your stock price, strike price, and call premium to see max profit, max loss, and breakeven for a covered call.
How it works
- You buy (or already own) 100 shares of stock at the cost basis price.
- You sell one call contract at the chosen strike price and collect the premium.
- If the stock rises above the strike at expiration, shares are called away at the strike — you keep the premium and capture the gain up to the strike.
- If the stock stays below the strike, the option expires worthless and you keep the premium as income.
- If the stock drops, the premium reduces your loss but does not eliminate it.
Use cases
- Evaluate income potential before selling a covered call on a stock you own.
- Compare different strike prices and premiums to find the best trade-off.
- Calculate the exact breakeven price to assess downside protection.
- Estimate dollar returns for a given number of shares or contracts.
Frequently Asked Questions
Last updated: 2026-07-22 ·
Reviewed by Nham Vu