A covered call calculator allows an investor to enter in:
- Stock price
- Strike price
- Call premium
- Days until expiration
- Margin interest rate
You can then see the analysis of the parameters of the covered call write:
- Cost of the shares.
- Credit received from selling call options.
- Total capital required for the option play.
- Cost basis and break even level.
- Maximum potential gain.
- Return.
- Annualized return.
(Results will be different for a cash settled account versus a margin account and each will be shown).
Click here for the covered call calculator at optionmarketmentor.com.
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