Covered Call Calculator

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

What is a covered call?

IncomeLimited ProfitNearly Unlimited Loss

A simple income strategy for neutral to slightly-bullish situations when you are willing to sell your stock at strike price A. 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, the call will be assigned and your stock will be sold (but at a profit!). If it stays below the strike, you will collect the full premium to make a bit of income. The downside is that you could part ways with your stock at a price much lower than the current stock price, leaving potential profit on the table.

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