OPTIONS CALCULATOR
Covered Call calculator
See the yield, max profit if called, breakeven and downside cushion on a covered call — and remember the real risk is the stock, not the option.
A covered call caps your upside at the strike in exchange for premium. The premium lowers your breakeven and gives a little downside cushion, but the real risk is the stock itself — a covered call does not protect against a large decline. Assignment near the strike (especially around dividends) is normal.
FAQ
What is the max profit on a covered call?
Capital gain to the strike plus the premium collected: ((strike − cost basis) + premium) × shares. Upside above the strike is capped because your shares get called away.
What is 'static' vs 'if called' return?
Static return is the premium yield if the stock is unchanged at expiry. If-called return assumes the stock is at or above the strike and you're assigned — it adds any capital gain to the strike.
Does a covered call protect my downside?
Only by the premium amount. It lowers your breakeven but does not hedge a large decline — the dominant risk is still owning the stock.
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Educational research only. Not financial advice.