How much income can I collect and what's my breakeven if I sell a covered call?
Enter Your Covered Call
Your Result
Fill in your cost basis, strike, premium, and contracts, then click Calculate to see your income and breakeven price.
How this is calculated
Total premium collected equals your premium per share multiplied by 100 shares per contract and your number of contracts.
Breakeven price equals your stock cost basis minus the premium you collected, since the premium reduces your effective cost in the stock.
Max profit if the stock is called away equals your strike price minus your cost basis, plus the premium, multiplied by 100 and your contracts. This only represents a full gain if your strike is at or above your cost basis. If your strike is below your cost basis, being assigned still locks in a loss on the stock, partially offset by the premium.
This assumes a standard equity option contract represents 100 shares, and that you already own the shares before selling the call. It does not include commissions, taxes, or dividends.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Options trading involves risk of loss, including the risk of early assignment on your short call, and past option strategies do not predict future results. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation, always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
Know Your Number Before You Sell
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