Skip to main content

Advertiser Disclosure: We earn commissions when you open accounts through our links at no cost to you. This never affects our ratings or recommendations.

Risk Disclosure: Options trading involves significant risk of loss and is not appropriate for all investors. You may lose more than your initial investment. Nothing on this site constitutes financial or investment advice. Full disclosure →

FREE TOOL

Options Income Calculator

Calculate your options income across 5 strategies — covered calls, cash-secured puts, straddles, iron condors, and vertical spreads.

Sponsored Placement Available

Sponsored by an options broker? Reach active traders using this calculator.

View Options →

Trade Setup

$

e.g. $125.00 — current market price of the stock

$

e.g. $130.00 — the strike you plan to sell

$

e.g. $3.50 — mid-price of the option contract

1 contract = 100 shares

e.g. 30 — days until the option expires

Covered Call: You own 100 shares per contract and sell a call above the current price to collect premium. Your upside is capped at the strike, but you keep the premium regardless.

Your Results

Total Premium Collected $350.00
Annualized Yield 10.2%
Capital Required $12,500.00
Return on Capital 2.8%
Breakeven Price $121.50
Max Profit (expires worthless) $350.00
If Assigned (sell at strike) $13,000

What this means

Selling this covered call on NVDA at the $130 strike, you'd collect $350 in premium upfront. That's a 2.8% return on your $12,500 in stock in just 30 days — or 10.2% annualized if you repeat monthly. Your stock is protected down to $121.50. If NVDA stays below $130 at expiration, you keep the full $350. If it rises above $130 and you get assigned, you sell your shares for $13,000 total.

Ready to start? Compare the best options brokers →

Compare Brokers →

FREE WEEKLY INSIGHTS

Free weekly market + broker insights

Market trends, broker updates, and options strategies — delivered weekly. Free.

No spam. Unsubscribe anytime.

Options Guides: Covered CallsCash-Secured PutsIron CondorsPoor Man's CCVertical SpreadsStraddleLEAPS View All 30 →