Covered Call Calculator - Generate Income on Stocks You Own
The SecurePutCalls Covered Call Calculator helps stock owners evaluate the income potential of selling covered calls against their existing holdings. A covered call involves selling a call option on shares you already own, collecting premium income immediately in exchange for capping your upside at the strike price through expiration. It is one of the most widely used options income strategies and is central to the second phase of the Wheel Strategy.
Enter your stock, number of shares, the call strike price, and expiration date. The calculator instantly shows the premium income you would collect, your breakeven price, the maximum profit if shares are called away, the annualized yield on your position, and the effective cost basis reduction achieved by collecting premium. Compare multiple strikes and expirations simultaneously to find the optimal balance between income generation and the risk of losing shares before your target price.
For wheel strategy traders who have been assigned stock after a cash-secured put exercise, the covered call calculator is the essential tool for determining the best call to sell above your cost basis. It models the recovery timeline showing how many rounds of covered call premium are needed to fully offset an unrealized loss. The calculator also supports Indian market options and is free to use on all plans.