Options profit calculator
A call or put at expiry: break-even, most to make and lose.
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Covered call calculator
What selling a call on shares you own pays, what it gives up, and where it breaks even.
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The shares and the call
The covered call
Selling the 55 call on 100 shares brings in $80.00: 1.60% in 30 days if the price stays put, about 19.5% a year at that pace.
- If the shares are called away
- +$580.00 (+11.60%, the most this trade can make): gains above 55 go to the buyer of the call.
- Break-even
- 49.2: the premium covers a fall of 1.60%, and no more.
The result at expiry, with the call sold and with the shares alone. Commission left out.
| Price at expiry | Covered call | Shares alone |
|---|---|---|
| 40 | -$920.00 | -$1,000.00 |
| 45 | -$420.00 | -$500.00 |
| 50 | +$80.00 | +$0.00 |
| 55 | +$580.00 | +$500.00 |
| 60 | +$580.00 | +$1,000.00 |
| 65 | +$580.00 | +$1,500.00 |
Education only, not investment advice. The answer comes from the numbers you typed in, not from your account or the market. Simulated results are hypothetical and have limits: real trading has slippage, gaps, changing results and emotions. Trading leveraged products can lose money quickly, including all of it. Risk warning
Educational only, not financial advice; trading involves risk.
Income now for gains given up later
Selling a call on shares you own pays you a premium today. In return you agree to sell the shares at the strike, so a big rise past it goes to the buyer of the call. The premium softens a fall only by its own size: with 100 shares at 50 and 0.80 of premium, a drop to 40 still costs 920 instead of 1,000. The yearly figure assumes you could sell a similar call again and again, which the market does not promise.
To price a call or put you buy, use the options profit calculator; for the shares alone, the stock profit calculator.
Not advice or tax advice. Arithmetic on the numbers you type; commission, early assignment and dividends are left out.
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Baroq never holds your money and never trades for you. Educational only, not financial advice; trading involves risk.