OFCovered Call Calculator

Covered call income lab · updated 2026-07-30

Covered Call Calculator for capped-upside option income

Estimate covered-call premium income, breakeven, capped upside, assignment outcome, and downside risk before selling a call against shares.

Open the covered call calculator
Short answer: a covered call adds option premium to a stock position, but it caps upside above the strike and does not remove stock downside risk.
$3.25example premium received per share
$96.75example breakeven from a $100 basis
Capupside is limited if shares are assigned

What this site gives you

A complete covered-call workflow, not a one-number answer.

Use the calculator, formula map, examples, risk pages, and checklist to decide whether the premium, strike, and assignment trade-off are worth further research. The community CTA is optional after the useful material.

Interactive covered call calculator

Model income, cap, breakeven, and assignment outcome

Enter your share basis, call strike, premium, contracts, and target stock price at expiration. The tool models simplified expiration outcomes only.

Enter assumptions to estimate covered-call outcome.
Breakeven$96.75
Max profit if assigned$1,325.00
Downside at target$1,125.00
Simple premium yield3.25%

Simplified expiration math. Results exclude commissions, bid/ask spread, taxes, dividends, borrow costs, early assignment, exercise decisions, changing implied volatility, and account-specific margin or settlement treatment.

BreakevenShare basis - premium received
Maximum simplified profitStrike - share basis + premium
Upside capShares may be called away above the strike
Downside exposureStock-like downside, reduced only by premium

Primary reading: OIC covered call strategy overview · OIC options pricing overview · FINRA options overview · Investor.gov options overview · OCC options disclosure document

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Covered Call Calculator and Return EstimatorHow a Covered Call Calculator WorksCovered Call Breakeven FormulaCovered Call Maximum Profit FormulaCovered Call Downside RiskCovered Call Assignment RiskCovered Call vs Cash-Secured PutCovered Call Calculator ExamplesCovered Call Trade ChecklistCovered Call Calculator FAQSources and Methodology for Covered Call Calculator

Optional related resources

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Options problem-solving resourceReview assignment risk with Options Assignment HelpOptions profit calculatorModel payoff scenarios with Options Profit CalculatorEarnings calculatorCheck event risk with Earnings Options Calculator
Reviewed/updated 2026-07-30 · SourcesMethodologyRisk disclosureCorrections

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