Calculator · Covered call
Covered call calculator Free, no sign-up.
Estimate premium income, breakeven and capped profit when selling a call against shares you own.Writing a 100 call for $2.00 on shares that cost $98 returns 4.07% if called in 30 days — 49.6% annualized; breakeven $96.01. Odds of profit: 80.8%.
Premium you collect
$199.34
If-called annualized
49.6%
4.07% if the shares are called
Breakeven
$96.01
Probability of profit
80.8%
Called away 49.1%
Capital at work
$9,800
Shares at your cost basis
Max loss
−$9,601
If the stock goes to $0
Quick answer
What a covered call pays, in three numbers
- Premium you keep
- $199.34
- Premium × 100 shares, minus fees. It stays yours whatever the shares do.
- Breakeven per share
- $96.01
- Your cost per share minus the premium kept per share.
- Most you can make
- $399.34
- (Strike − share cost) × 100, plus the premium kept.
Example, the trade above: 100 shares bought at $98.00, one $100.00 call sold for $2.00 a share, $0.66 in fees. Above $100.00 the shares are called away and the gain stops at $399.34. Below $96.01 the fall in the shares is bigger than the premium. Change the numbers below to run your own trade.
Comparing it with a put, a roll or a full cycle? Use the wheel strategy calculator.
01
Set up the trade
Pick a strategy, pull a live quote and fill in the contract — the answer above updates as you type.
Underlying
Live quoteType a ticker and press Get: the live price, the 52-week range and the next earnings and ex-dividend dates land here.
Contract
02
Scenarios & odds
What the trade makes if the stock moves, the odds behind the answer above — the Greeks are folded below.
Scenario analysis
| Move | Price | P&L | Return |
|---|---|---|---|
| -20% | $80 | -$1,601 | -16.3% |
| -10% | $90 | -$601 | -6.1% |
| -5% | $95 | -$101 | -1% |
| Breakeven (-4%) | $96.01 | $0 | 0% |
| Flat | $100 | $399 | 4.1% |
| 5% | $105 | $399 | 4.1% |
| 10% | $110 | $399 | 4.1% |
| 20% | $120 | $399 | 4.1% |
Returns & risk
- Return if calledTotal return if the shares are called away at the strike: premium plus the gain (or loss) from cost basis to strike.
- 4.07%
- Static return
- 2.03%
- Static annualized
- 24.75%
- Max gain if called
- $399.34
- Premium / dayNet premium spread over the days to expiration — the fairest way to compare expiries.
- $6.64
- Downside protectionPremium ÷ current price: the drop the premium absorbs before the shares are underwater on this trade.
- 2%
Probability
- Prob. called awayChance the stock closes above the call strike and shares are called away.
- 49.1%
- Expected move (1σ)One standard-deviation move by expiration: spot × IV × √(days/365). Price stays within ±1σ ~68% of the time.
- ± $4.57
- 1σ price range
- $95.43 – $104.57
04
Worked example
The default scenario, computed with this tool’s own math — replace the inputs above with your trade.
You own 100 shares bought at $100.00 and sell one $105.00 call for $1.50 a share, 30 days out. You keep $149.00 after the fee right away. If the shares finish above $105.00, they’re called away for a total of $649.00 (6.49% on your shares). Your breakeven drops to $98.51; the model gives 56.9% odds of profit.
- Premium kept after fees
- $149.00
- If called away
- $649.00 · 6.49%
- Share-price breakeven
- $98.51
- Probability of finishing above the call strike
- 23.7%
- Estimated probability of profit
- 56.9%
05
Common questions
What the numbers mean — and what they leave out.
- What does a covered call include?
- One standard contract covers 100 shares. Enter the share cost, call strike, premium, fees and time to expiry. The estimate combines the share and option results.
- Is the premium my total profit?
- No. A fall in the shares can exceed the premium received. Gains above the strike are given up if the shares are called away. Taxes and dividends are not included.
- Is this covered call calculator free?
- Yes. It is free and needs no account. A free account only comes in if you want to save the trade and track it.
- How do you calculate the return on a covered call?
- If the call expires, divide the premium kept after fees by what the shares cost. If the shares are called away, add the gain up to the strike to that premium first. The calculator then scales each return to a year with 365 ÷ days to expiry.
- What is the breakeven on a covered call?
- Your cost per share minus the premium you kept per share after fees. Below that price at expiry, the position shows a loss. The calculator shows it as soon as you enter your share cost.
- What happens if my shares are called away?
- You sell 100 shares per contract at the strike and keep the premium. Any rise above the strike goes to the buyer. It can happen before expiry, most often just before an ex-dividend date or when the call is deep in the money.
06
The rest of the workbench
Every free tool, one click away — plus the terms behind these numbers.
Next steps
Plan the trade before you place it: the position size calculator shows how many shares or contracts fit your risk, the options profit calculator draws the payoff at expiry, the risk/reward calculator weighs the target against the stop, and the drawdown simulator shows how deep a run of losses can go. New to options? Start with the free lessons Why sell options instead of buy them, Reading an options chain and The Greeks, in plain English.
Terms behind the numbers
07
Keep going
Priced a trade? Track it for real, or learn the ideas behind the numbers.
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