Covered Call Writing Calculator

Calculate the rate of return in your cash or margin buy write positions

This calculator will automatically calculate the date of expiration, assuming the expiration date is on the third Friday of the month. Get covered writing trading recommendations by subscribing to The Option Strategist Newsletter.

Inputs

Enter the following values:
* Indicates required fields

Stock Price *

Shares Bought *

Stock Commission in $

or % (eg. 5.5 for 5.5%)

Option Price *

Options Sold *

Strike Price *

Dividends / share thru expiry

Option Commission in $

or % (eg. 5.5 for 5.5%)

Exp Month * (enter a # 1 - 12)

Expiration Year * (4 digits)

Margin Interest Rate

if any (eg. 10 for 10%)

 

Results

Expiration Date

Days to Expiration

Cash Returns

(No Margin Used)

 

 

 

Net Investment

 

 

Return if exercised 

%

Return if unchanged

%

Downside Break-Even Pt.

%

Downside Protection

%

Margin Returns

 

 

 

Net Investment

 

 

Return if Exercised

%

Return if Unchanged

%

Downside Break-Even Pt.

%

Downside Protection

%

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Trading or investing whether on margin or otherwise carries a high level of risk, and may not be suitable for all persons. Leverage can work against you as well as for you. Before deciding to trade or invest you should carefully consider your investment objectives, level of experience, and ability to tolerate risk. The possibility exists that you could sustain a loss of some or all of your initial investment or even more than your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and investing, and seek advice from an independent financial advisor if you have any doubts. Past performance is not necessarily indicative of future results.
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