Covered call calculator
A covered call is a call you sell on 100 shares you already own. You get paid now; if the stock is above the strike at expiry, your shares are sold at the strike. Type in the numbers from your broker and see what you keep, what you make if called away, and what you give up.
One contract = 100 shares you own.
- Premium you collect
- $315
- Return if the stock stays below the strike
- 0.6%
- Same, per year (comparison only, not a forecast)
- 32%
- If your shares get called away (total gain)
- $9,315
- Upside you give up
- everything above $560.00
- Breakeven on your shares
- $466.85
- If it falls 20% by expiry
- −$9,865
The premium cushions a fall only by the premium. The 20% drop is an example, not a forecast.
What the numbers mean
A covered call rents out the top of your stock. You get paid now; if the stock runs past the strike, your shares are sold at the strike and you miss the rest of the move. If the stock falls, you still own every share of the fall.
DipBell is a publication, the same for every reader. It is not advice on your own account.
See today's trades, free.
Three trades free every day. Sign up free to follow up to 10 stocks.
Continue with Google