Covered Call Calculator
Enter spot cost, call premium received, strike and expiry price to estimate the covered call's expiry PnL.
Results
Fill in the inputs and click Calculate.
- Expiry PnL
- –
- Break-Even
- –
- Worst-Case Loss
- –
Risk disclaimer
This calculator provides a gross single-settlement estimate, not investment advice. A covered call still carries downside like holding the asset itself.
What is a covered call?
Hold spot and sell the same amount of calls: below the strike you keep the coin and the premium; above the strike your coin is assigned away and gains cap.
This estimates gross expiry PnL on a single settlement, ignoring fees, taxes and rolling.
How to use
- Enter your spot cost basis.
- Enter the premium received, strike and expected expiry price.
- Click Calculate to see expiry PnL, break-even and worst-case loss.
Formula
- Expiry ≤ Strike: PnL = (Expiry − Cost) + Premium
- Expiry > Strike: PnL = (Strike − Cost) + Premium
- Break-even = Cost − Premium
Example
Cost 100, premium 5, strike 110: expiry 120 → PnL = (110−100)+5 = 15; expiry 90 → −5.
Break-even = 95, so you only lose below 95.
FAQ
What about capped upside?
That is the trade-off of selling the call: you earn premium but give up gains above the strike.
Want to keep upside?
Raise the strike (lower premium) or consider variants; protective puts address downside differently.