Scenarios
Covered call calculator examples
These hypothetical examples use a $100 share basis, $110 short call strike, $3.25 premium, and one standard contract.
Stock at $108Call expires out-of-the-money; simplified P/L is $1,125 before costs.
Stock at $115Shares are capped at $110 if assigned; simplified max profit is $1,325 before costs.
Stock at $90Premium offsets part of the stock loss; simplified P/L is -$675 before costs.
Stock at $70Large downside remains; simplified P/L is -$2,675 before costs.
The examples are arithmetic, not recommendations or forecasts.
Primary reading: OIC covered call strategy overview · OIC options pricing overview · FINRA options overview · Investor.gov options overview · OCC options disclosure document