Combine stock ownership and a sold call to see the premium income, capped upside, and downside.
Your position
Illustrative starting values · USD
Use one stock or ETF and the same expiration for every option leg. Prices are per share.
Modified position
Stock quantities are shares. Option quantities are contracts. Enter the total fees for the entire position once.
Net entry cost
Maximum profit
Maximum loss
Breakeven stock price
Profit / loss at expiration
Entire position · Includes entered fees
Move over the chart or adjust the stock price to inspect a scenario. Shading marks profit and loss.
What if the stock ends at…
Profit / loss at expiration
View payoff table
Sample outcomes at expiration, including strike and breakeven prices
Stock price
Profit / loss
Maximum profit and loss consider all stock prices from zero upward, including prices outside the chart. Results use the legs entered; editing a strategy can change its risk.
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Research covered calls
Use your model as a starting point, then explore covered calls on Market Chameleon. Your calculator inputs stay here.
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About this calculator
How to use the Covered Call calculator
Enter the cost per share of the stock and the premium received for the call. To keep the position covered, hold enough shares for every call sold: typically 100 shares per contract.
Understanding the payoff
For a fully covered position, breakeven = stock entry price − call premium. Maximum profit = (call strike − stock entry price + call premium) × shares. The stock can fall to zero; the premium provides only a partial cushion.
These formulas describe the standard strategy before fees. The results above include the total fees entered and are calculated from your actual legs.
Worked example
Buy 100 shares at $50; Sell 1 $55 call option at $2 per share. All options share one expiration and a 100-unit multiplier. Fees are zero in this example.
This is an expiration payoff estimate, not a live option quote or a prediction. It assumes all option legs expire together on one stock or ETF, the stock price cannot be negative, and options settle at intrinsic value. The default multiplier is 100 shares per contract; adjust it for the contract being modeled. Early assignment, exercise decisions, dividends, interest, taxes, and slippage can change realized results. Cash requirements and broker margin are separate from maximum loss. Different expirations, futures options, and adjusted contracts with non-cash deliverables are not supported.
Method: add each leg’s intrinsic value at expiration, subtract its entry cost with the correct buy/sell sign, and subtract total fees. See Cboe’s worked spread example on Fidelity for a reference calculation.
