Fidamen

Covered Call Calculator

This calculator models covered call and buy-write option outcomes using user-supplied inputs: stock price, strike, premium, shares, days to expiration, commissions, and cost basis. It reports breakeven, theoretical capped profit if assigned, worst-case loss if the stock falls to zero, and a simple annualized return estimate.

Results are estimates for planning and comparative analysis only. They assume contract sizing in 100-share increments and basic commission handling. This tool does not account for complex scenarios such as early assignment after ex-dividend date, margin interest, tax treatment, or multi-leg commissions beyond the stated inputs.

Updated Nov 26, 2025QA PASS — golden 25 / edge 120Run golden-edge-2026-01-23

Governance

Record d1070914b6da • Reviewed by Fidamen Standards Committee

Write a call option against shares you already own. Calculates premium received, breakeven, capped profit if assigned, theoretical maximum loss if the stock goes to zero, and simple annualized return for the option term.

Inputs

Results

Updates as you type

Options contracts

1

Net premium received

$249.00

Breakeven price per share

$97.51

Maximum profit if assigned

$749.00

Maximum loss (stock to zero)

$9,751.00

Return if assigned (%)

749.00%

Annualized return (%)

9112.83%

OutputValueUnit
Options contracts1—
Net premium received$249.00USD
Breakeven price per share$97.51USD
Maximum profit if assigned$749.00USD
Maximum loss (stock to zero)$9,751.00USD
Return if assigned (%)749.00%—
Annualized return (%)9112.83%—
Primary result1

Visualization

Methodology

Calculations are deterministic arithmetic based on inputs. For option sizing the calculator assumes 1 contract per 100 shares (contracts = shares / 100). Premiums are treated as per-share values and multiplied by shares for total premium.

Commissions are applied per contract leg as provided. Breakeven reduces the effective cost basis by net premium received per share. Maximum profit if assigned is computed as the capital gain to the strike plus net premium received. Maximum loss assumes the underlying falls to zero and is net of collected premium and stated commissions.

Annualized return is a simple scaling of the period return to a 365-day year and does not compound between periods. It is intended for rough comparisons between opportunities and expirations.

F.A.Q.

Does this calculator include early assignment risk and dividends?

This tool includes a user field for expected dividend yield but does not simulate early assignment dynamics or daily dividend timing. Early assignment can occur and materially change outcomes; treat these results as pre-assignment estimates.

Are taxes included in the calculations?

No. Tax treatment varies by jurisdiction, holding period, and account type. Use these outputs for pre-tax planning and consult a tax professional for tax-adjusted estimates.

How accurate are the annualized return figures?

Annualized return is a simple, non-compounded projection based on the option term. It is an approximation intended for comparison; realized returns will differ due to execution, slippage, early assignment, and follow-up trades.

Is this financial advice?

No. This calculator provides quantitative estimates for planning and education only. It is not personalized investment advice. Consult a licensed financial professional for advice tailored to your circumstances.

Sources & citations

Further resources

Versioning & Change Control

Audit record (versions, QA runs, reviewer sign-off, and evidence).

Record ID: d1070914b6da

What changed (latest)

v1.0.0 • 2025-11-26 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Public QA status

PASS — golden 25 + edge 120

Last run: 2026-01-23 • Run: golden-edge-2026-01-23

Engine

v1.0.0

Data

Baseline (no external datasets)

Content

v1.0.0

UI

v1.0.0

Governance

Last updated: Nov 26, 2025

Reviewed by: Fidamen Standards Committee (Review board)

Credentials: Internal QA

Risk level: low

Reviewer profile (entity)

Fidamen Standards Committee

Review board

Internal QA

Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person

Semantic versioning

  • MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
  • MINOR: New features or fields that do not change existing outputs for the same inputs.
  • PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.

Review protocol

  • Verify formulas and unit definitions against primary standards or datasets.
  • Run golden-case regression suite and edge-case suite.
  • Record reviewer sign-off with credentials and scope.
  • Document assumptions, limitations, and jurisdiction applicability.

Assumptions & limitations

  • Uses exact unit definitions from the Fidamen conversion library.
  • Internal calculations use double precision; display rounding follows the unit's configured decimal places.
  • Not a substitute for calibrated instruments in regulated contexts.
  • Jurisdiction-specific rules may require official guidance.

Change log

v1.0.0 • 2025-11-26 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: fe988fc3298b