Covered Call Return Calculator
Enter the share price, strike, premium and the expiry price to model.
Return at the expiry price
β
Enter values above
Maximum profit
β
Break-even share price
β
Annualised premium yield
β
Return if called away
β
Premium as % of share
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Share price when sold ($) | 50 |
| Strike price ($) | 55 |
| Premium received ($ per share) | 2 |
| Shares owned | 100 |
| Days to expiry | 30 |
| Share price at expiry ($) | 52 |
| Result | Value |
|---|---|
| Return at the expiry price | $400.00 |
| Maximum profit | $700.00 |
| Break-even share price | $48.00 |
| Annualised premium yield | 48.67% |
| Return if called away | $700.00 |
| Premium as % of share | 4.00% |
Values shown are produced by this page in your browser; change any input to update them.
How to use the Covered Call Return Calculator
- Share price when sold ($) β default 50
- Strike price ($) β default 55
- Premium received ($ per share) β default 2
- Shares owned β default 100
- Days to expiry β default 30
- Share price at expiry ($) β default 52
- Press Calculate to update the results instantly.
Frequently asked questions
Your shares are called away at the strike, so the gain is capped at the strike plus the premium. You keep the premium but forgo everything above the strike.
Look at the break-even price and the maximum profit. Selling the call only adds value if the share price ends below the strike, or if the premium outweighs the upside you give up.
Because a 2% premium for 30 days is very different from 2% for a year. Annualising puts different expiries on a comparable footing.