Covered Call Calculator
Model premium income, assignment profit, downside breakeven, and capped upside for a new or hypothetical trade.
This is a pre-trade calculator — it models hypothetical trades, not your live positions.
Trade Inputs
A covered call generates income but caps upside above the strike. Commissions are deducted from net premium.
Enter a ticker to auto-fill delayed price.
Covered call option selector
Open the chain to select a contract.
Selected short call
EditableNet premium income
$249
Maximum profit (if assigned)
$2,449
Maximum return
21.9%
Annualized yield
26.3%
Downside breakeven
$95.5
Downside protection
2.5%
Upside until strike
7.1%
If assigned profit
$2,450
Annualized return (assigned)
257.6%
Monthly yield
2.2%
Max loss
-$9,550
Payoff Chart
| Stock Price | P/L | Return | Status |
|---|---|---|---|
| $56.00 | -$3,950 | -35.3% | Loss |
| $69.07 | -$2,643 | -23.6% | Loss |
| $82.13 | -$1,337 | -11.9% | Loss |
| $95.20 | -$30 | -0.3% | Loss |
| $108.27 | $1,277 | 11.4% | Profit |
| $121.33 | $2,450 | 21.9% | Profit |
| $134.40 | $2,450 | 21.9% | Profit |
| $147.47 | $2,450 | 21.9% | Profit |
| $160.53 | $2,450 | 21.9% | Profit |
Time and IV heatmap coming soon.
AI Trade Explanation
Mock mode unless an AI key is configured.
Summary
This covered call on NVDA is designed to turn a specific market view into a measurable risk/reward profile.
How this trade makes money
The trade benefits when the stock finishes in the profitable zone shown on the payoff chart. Estimated max profit is 2449.35.
Main risk
The main risk is that the stock moves beyond the expected range or through the short strike. Estimated max loss is -9550.
Breakeven explanation
The breakeven level is 95.5. Above or below that level, profit and loss changes according to the strategy shape.
Best-case scenario
The stock finishes where the sold premium decays and the long protection is not needed, or where the directional leg reaches its target.
Worst-case scenario
The stock makes a sharp move against the structure, assignment can occur on short options, and real fills may differ from estimates.
Conservative/moderate/aggressive rating
This looks moderate unless the short strike is very close to the current stock price or the position size is large relative to the account.
Watch points before expiration
Watch price distance to short strikes, upcoming earnings, liquidity, and whether the remaining premium is worth the risk.
Suggested exit/roll considerations
Consider taking profit after a large portion of max profit is captured, or rolling before assignment risk becomes uncomfortable.
This is educational analysis only and not financial advice.