Stock Option Calculators
Covered Call Calculator
The Covered Call Calculator can be used to chart theoretical profit and loss (P&L) for covered call positions. To create a covered strategy add a stock and a short call to the calculator. Clicking on the chart icon on the Expensive Call/Put screeners loads the calculator with a selected short call or short put. Clicking 'Add Stock' will add the underlying stock to the calculator forming a covered call or covered put position.
The black line shows the P&L, which is the sum of the P&L for the long stock and the short call positions. In this example, if the stock price stays above the short call strike price of $127, the position will net $580 per contract. The underlying security will have to fall $6.40 before the position starts to lose money.
The green triangle displays the approximate break-even point. General Help with the calculator can be found here.