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Covered Call Income Calculator

Calculate income and capped upside from selling covered call options on stocks you own.

Calculation Inputs

Calculation Results

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Enter inputs on the left and click Calculate to view results.

Formula & Methodology

Max Profit = (Strike − Current + Premium) × Shares; Yield = Premium/Price × (365/30)

Covered calls generate income by capping upside. If stock stays below strike, you keep the premium and shares.

Frequently Asked Questions

When are covered calls assigned?

If the stock is above the strike at expiration, your shares are "called away" at the strike price. You profit up to the strike plus premium received.