TC TradeCaliper

Covered Call Calculator

Static, if-called, and annualized returns on a covered call — plus breakeven and max profit.

Static return
2.00%
Annualized
24.33%
If called
7.00%
Premium income
$200.00
Break-even $98.00 · downside protection 2.00% · max profit $700.00

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How to use it

Enter your stock price (or cost basis), the call strike you’re selling, the premium per share, the number of contracts, and days to expiration. The calculator returns your static return (if the stock is unchanged), the annualized version, the return if you’re called away, and the premium income in dollars.

The math

static return = premium ÷ stock price, if-called = (strike − price + premium) ÷ price, and annualized = static × 365 ÷ days. Selling a $105 call for $2 against $100 stock is a 2% static return (24.3% annualized over 30 days), a 7% return if called, with a $98 breakeven.

TradeCaliper is a planning and education tool, not financial advice.

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Frequently asked questions

How is covered call return calculated?

The static return is the premium you collect divided by your stock price — what you earn if the stock stays flat and the call expires. The if-called return adds any gain up to the strike. Annualizing the static return (× 365 ÷ days) lets you compare trades of different lengths.

What is the breakeven on a covered call?

Your breakeven is your stock cost minus the premium received, because the premium cushions the downside by that amount. Below the breakeven you start losing money on the combined position.

What is the maximum profit?

If the stock is called away at the strike, your max profit is the gain to the strike plus the premium, times 100 per contract. Above the strike you don’t participate further — that capped upside is the trade-off for the premium income.

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