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Research & education only — not financial advice.TENK is not a registered investment adviser; calls are impersonal, generated from SEC filings and a delayed/third-party price feed, and may be wrong or out of date. The operator and an affiliated trading operation may hold or trade the securities TENK rates — see Disclosures. Do your own research.

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TTENK/calls
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Home›Options calculator›Covered call

Covered call calculator

income

Own 100 shares and sell a call against them. The premium is kept no matter what; upside is capped at the strike. A widely used income overlay on existing holdings.

Underlying (optional)
Market inputs

Premiums start as Black-Scholes model values — overwrite them with your broker’s real quotes for exact numbers.

Legs
1 contract = 100 shares
Net debit
$9,833
Max profit
$667
Max loss
−$9,832
Breakeven
98.33
Profit / loss at expiry
at expiry today (model)
50spot 100.00168
Delta
68.6
shares-equivalent
Gamma
-4.13
Δ per $1
Theta / day
$5.44
time decay
Vega / 1%
−$10.18
per vol point
P&L by price and date (Black-Scholes, IV 30%)
pricetoday+4d+8d+11d+15d+19d+23d+26dexpiry
130.0628634639643648653658662667
125.0623631638642648653658662667
120.0607619629637645653658662667
115.0565583601614630645656662667
110.0470495520541569599630652667
105.0289316345369403442489533667
100.0022456489115141158167
95.0-389-377-365-356-347-339-334-333-333
90.0-846-842-838-836-834-833-833-833-833
85.0−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k−1.3k
80.0−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k−1.8k
75.0−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k−2.3k
70.0−2.8k−2.8k−2.8k−2.8k−2.8k−2.8k−2.8k−2.8k−2.8k

Dollar P&L for the whole position. Pre-expiry cells are model values (constant IV); real marks will differ with volatility and skew.

Other strategies

  • Long call
  • Long put
  • Cash-secured put
  • Bull call spread
  • Bear put spread
  • Iron condor
  • Long straddle
  • Long strangle
  • Collar

Common questions

What is the maximum profit on a covered call?
(Strike − stock cost basis + premium) × 100. It's reached when the stock finishes at or above the strike and the shares are called away.
What is the risk of a covered call?
The stock itself: the position loses roughly like owning shares below the breakeven (cost basis − premium). The short call is covered by the shares, so there is no naked-call risk.
When does a covered call underperform?
In strong rallies — gains above the strike belong to the call buyer. The premium is the trade-off for that capped upside.

Research the underlying

An options position is a view on the company underneath. Our SEC-grounded verdicts, quality scores and filings coverage are free for every US-listed name.

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Educational model, not trade advice. Options involve substantial risk and are not suitable for every investor — read the OCC’s Characteristics and Risks of Standardized Options. Model values use Black-Scholes with your inputs (constant volatility, European exercise, no dividends) and will differ from live market prices.

Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.