Covered Call Calculator
A covered call combines shares you own with a short call option. For a standard equity contract, 100 shares cover one call. The premium is an upfront cash receipt, not guaranteed profit: a falling stock can lose much more than the option pays.
Use this calculator to compare available strikes across selected expirations. It ranks estimated returns, not investment suitability or risk-adjusted performance. The Analyzer and these pages share the same calculation functions.
Try the covered call calculator
Enter a stock ticker to compare delayed call quotes. Covered Call is selected by default.
Type a ticker below to compare delayed option quotes across selected expirations.
Save up to 5 stocks for quick access. Saved in this browser · No login needed.
Enter a stock and see every put or covered call on one map — how much you earn, on how much committed, for how long.
Annualized returns are theoretical estimates based on the displayed option premium and DTE. They assume the premium can be repeatedly earned at the same rate and do not account for assignment, price movement, volatility changes, transaction costs, taxes, slippage, or early exercise.
Quotes are delayed and may be older outside market hours. Retrieval time is not the market quote timestamp. Estimated premiums are not guaranteed fills; annualized figures are theoretical, exclude fees and taxes, and are not risk-adjusted rankings.
How this calculator measures returns
Premium yield is premium per share divided by the current stock price, not stock price minus premium. For a $100 stock and a $2 call premium, that is 2%. The comparison assumes a new stock purchase at the quoted price; an existing holding may have a different cost basis.
For out-of-the-money and at-the-money calls, the headline annualized estimate scales premium yield by 365 divided by days to expiration. Potential stock appreciation to the strike is shown separately. For in-the-money calls, the headline uses the net if-called return, subtracting the stock loss down to the strike before annualizing. None of these annualized estimates predicts a repeatable annual return.
Strike, breakeven and assignment
OTM percentage measures the gap between strike and stock price. It is not a promise about when assignment occurs. An assigned standard call requires selling 100 shares at the strike; American-style options can be assigned before expiration.
The calculator's expiration breakeven assumes the current stock price less the call premium, before fees and taxes. Upside is capped, while substantial stock downside remains. Check the if-called outcome alongside premium income.
Considering an early close
A 50% premium-capture threshold is an optional monitoring heuristic, not a universal sell rule or 50% of the whole position's profit. Buying back a call reduces the remaining option obligation, but the shares still carry market risk.
Compare remaining premium, time, spreads, fees and your desired stock exposure. Closing or rolling can cost money; a roll closes one trade and opens another and is not guaranteed to produce a credit. The journal's threshold is adjustable.
Further reading
See the Options Industry Council educational overview for strategy mechanics and risks. Calculator formulas above describe this app's conventions, not personalized advice.