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Covered Call Calculator

Calculate your premium yield, annualized return, and break-even price — then see exactly what happens if the stock goes up, stays flat, or goes down.

Trade Details

Current share price

$

The call strike you'd sell

$

Per-share premium received

$
days

1 contract = 100 shares

Results

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How covered calls work

A covered call means selling a call option on stock you already own. You collect a premium upfront — that's income, regardless of what happens next. In exchange, you agree to sell your shares at the strike price if the stock rises above it before expiration. The trade-off: you cap your upside in exchange for guaranteed income.

Most investors sell covered calls 30–45 days out, at a strike price above the current stock price. This balances premium income against the probability of assignment. The further out-of-the-money the strike, the less premium you collect — but the less likely your shares get called away.

What Are Covered Calls?

The core concept explained in plain English — with a real AAPL example.

5 Costly Mistakes

The covered call errors that catch beginners — and how to avoid them.

Best Stocks for 2026

What to look for — and what to avoid — when picking covered call candidates.

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ThetaScout is a screening tool, not investment advice. Options involve risk and are not suitable for all investors. Past screening results do not guarantee future performance. The calculations above are for educational purposes only and do not account for commissions, fees, or taxes.