Covered Call Income Estimator

Calculate premium income, annualised yield, and max profit from selling covered calls on your stock positions.

Covered Call Income Estimator

Calculate how much income you can generate from selling covered calls on your stock positions, and see your risk/reward profile.

📘 A covered call means you own at least 100 shares of a stock and sell a call option against them to collect the premium as income. If the stock is called away (above the strike), you profit on both. If it stays below, you keep the premium and your shares.

Shares owned

Must be ≥100 (1 contract = 100 shares)Current stock price

Call option premium

Per share (multiply ×100 for contract value)Strike price

Days to expiry (DTE)

e.g. 30 for monthly, 7 for weeklyContracts to sell

Per 100-share lot owned

💵

Premium collected

$350.00

1 contract(s) × 100 × $3.50

📅

Monthly income est.

$350

If this cycle repeats

📆

Annualised income

$4,200

Projected over 12 months

📊

Premium yield (cycle)

2.33%

28.4% annualised

🎯

Breakeven price

$146.50

2.33% downside buffer

🚀

Max profit (if called)

$850

5.7% return on position

Trade summary

Position cost basis$15,000

Contracts sold1

Total premium / contract$350.00

Strike vs current$155.00 (+3.3%)

Expiry30 days

Annual yield on cost basis28.0%

⚠️ Risk: Selling covered calls caps your upside. If the stock surges above the strike, you miss out on gains beyond it. Ensure you own exactly 100× shares per contract. Options carry unique risks — consult a financial advisor before trading.