OPTIONS — COVERED STRATEGY
Covered Call
Analyse owned shares and a written call as one position: premium, break-even, assignment, remaining downside and sacrificed upside.
Inputs
Field guide ↗The tool rejects positions where owned shares do not fully cover the deliverable of the written calls. Extra shares remain long and keep uncapped upside.
A Covered Call assumes you are willing to sell the covered shares at the strike. American-style options may be assigned before expiration.
Tax is a simplified estimate applied only to positive displayed results. It does not model tax-basis rules, offsets, holding periods or option-specific treatment.
The payoff refers to expiration and does not estimate the call’s value before expiration. Spread, volatility, gaps, liquidity and actual costs can change the outcome.
Covered Call summary
Covered Call vs shares only at expiration
The chart compares the full strategy with the result from holding the shares alone.
Covered Call
Shares only
Scenario comparison
| Share price | Covered Call | Shares only | Difference |
|---|
Assignment scenario
Managing the open call
Enter the current call premium to simulate a buyback.