Income & Yield
Covered Call Yield Calculator
Measure premium yield, breakeven and capped total return for a fully Covered Call.
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 this tool
Underlying price here is your stock purchase cost. The calculation assumes shares exactly cover the sold calls. Premium yield uses stock cost as its denominator; maximum total return also includes the gain or loss from cost to strike.
Annualization simply repeats the period rate across 365 days. It does not predict repeatable premiums or include dividends, taxes or stock losses. A Covered Call retains most downside risk of owning stock.
Worked example
Buy shares at $100 and sell a $105 call for $3. Premium yield is 3%, breakeven is $97, and maximum total return is 8%, before fees.
Related tools
Model references and conventions
365 calendar days per year. Continuous rates for theoretical pricing. All examples are illustrative.
