Covered Call Calculator

Search a symbol to visualize the potential profit and loss for a covered call option strategy.

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What is a covered call?

IncomeLimited ProfitLimited Loss

A simple income strategy for neutral to bullish situations. If you own 100 shares of the underlying stock, you can use a covered call to generate income or sell your position at a favorable price.

If the stock reaches strike price A, you will be exercised and your stock will be sold (but at a profit!). If it stays below the strike, you will collect the premium and make a bit of income.

AProfitLossStock Price (at expiration)
  • Own the underlying
  • Sell a call at strike A