Covered Call Calculator
Estimate the economics of selling a covered call against shares you already own. The calculator shows option income, breakeven stock price, maximum profit if the shares are called away, and return on the covered capital.
Premium income$150.00
Breakeven$48.50
Max profit if called$650.00
Return if called13.00%
How this tool works
Breakeven per share = stock cost − call premium. Maximum profit per share = strike − stock cost + call premium.
Example
Buying shares at $50 and selling a $55 call for $1.50 produces a $48.50 breakeven and $6.50 maximum profit per share if assigned at $55.
Common questions
What happens above the strike?
The short call caps additional upside. Shares can be assigned at the strike price.
Does this include dividends?
No. Dividends, taxes and transaction fees are not included.