Calculate premium yield and break-even for covered call options strategies.
Selling a Covered Call generates immediate income (premium) but caps your upside if the stock rallies past the strike price.
Immediate Premium Income
Guaranteed Cash
If Uncalled (Stock drops/sideways)
2.33% Return
28.4% Annualized
If Called (Stock hits strike)
9.00% Return
109.5% Annualized
Max Total Profit
$1,350.00
Breakeven / Downside Protection
$146.50 / sh
Strategy Defense
The premium received acts as a cushion, lowering your breakeven price to $146.50. This provides slight downside protection in exchange for capping upside gains above $160.00.
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