Covered Call Calculator

Calculate your profit, rate of return, and break-even point for any covered call trade — with and without margin.

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Enter your trade details

Fill in all four fields then click Calculate.

How to use this calculator

  1. Enter the number of contracts you plan to sell (1 contract = 100 shares)
  2. Enter the stock purchase price — what you paid or plan to pay per share
  3. Enter the strike price sold — the strike price of the call you’re selling
  4. Enter the bid price premium — the premium you receive per share for selling the call
  5. Click Calculate to see your profit and rate of return in each scenario
1 contract = 100 shares
Price you paid (or plan to pay) per share
The strike price of the call option you are selling
The premium per share you receive for selling the call

Your results

Results appear here after you click Calculate.

Enter your trade details and click Calculate to see your results.
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Disclaimer: This calculator is provided for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Results are estimates based on the figures you enter and do not account for commissions, fees, taxes, assignment risk, or early exercise. Options trading involves substantial risk and is not suitable for all investors. Past performance is not a guarantee of future results. Always do your own research or consult a licensed financial advisor before making investment decisions. IncomeTrader.com is not responsible for any trading or investment decisions made based on this tool.