OPTIONS · RESEARCH LAB

Keep the shares.
Or collect the premium?

Compare a covered call with holding the same stock. See what the premium cushions—and what selling the call gives up.

Hypothetical scenarios

This is a payoff calculator, not an options backtest. It uses your inputs, not market quotes. No dividends, taxes, cash interest, early assignment, rolling or price path. Actual assignment may differ. Standard 100-share contracts only.

Build a scenario

Starting share priceHypothetical purchase price in USD.Shares owned100 shares cover each standard call.Call strike pricePrice at which your shares may be sold.Premium received per shareUse the bid, not the midpoint. This is cash received, not immediate profit.Share price at expiryA scenario you choose, not a prediction.Option fee per contractCharged once for each 100-share call.Total stock purchase feeSame fee on both stock strategies.Total assignment feeOnce for this position, only if assigned.

Exercise at expiry

Calls require covered shares. Option fees must fit within the premium; this calculator does not borrow to pay fees.

Covered-call net result$693.356.93% of initial capital

Compared with holding-$305.65Behind holding in this scenario

Different endings, same starting point

Net P&L range-$10,001.00 to $4,999.00

$0 per share$150.00 at expiry

Covered callHold sharesCash: zero P&L

Terminal profit/loss versus share price at expiry, using the selected exercise scenario. The strike threshold can produce a fee-related step. This chart does not show returns over time or drawdown.

Where the money ends up

Equal initial capital: $10,001.00. 1 standard contract, each covered by 100 shares.

Strategy	End value	Net P&L	Shares left
Covered call	$10,694.35	$693.35	0
Hold shares	$11,000.00	$999.00	100
Cash · 0% interest	$10,001.00	$0.00	0

Your shares are sold at the strike. Modeled exercise if the call is at least $0.01 in the money at expiry. Actual exercise may differ.

Premium cash at entry: $200.00. Initial short-call liability: $200.00. Entry P&L after fees: -$1.65. Receiving premium alone does not increase net wealth.

Includes exact inputs, assumptions and model version. No account or brokerage order is created.

HISTORICAL OPTIONS · NOT READY

What we can test with recorded data

Audit as of September 26, 2026: 6 provisional cycle candidates across AAPL and NVDA. None is validated for a performance comparison. These counts are a dated audit, not a live coverage promise.

July 2026 has no option quote snapshots in the audited dataset.
Dividend amounts, refresh status, settlement and funded share re-entry still need validation.
ETF dividends are missing; SPY is excluded from the first historical comparator.
Options orders, historical option replay and early-assignment modeling are not available here yet.

Use this with an AI agent

The MCP tool calculate_covered_call computes the same hypothetical scenario. Ask: “Compare holding 100 shares bought at $100 with selling a $105 call for $2 per share. Show a fall to $80, flat stock and a rise to $120, including fees.” Specify all inputs and keep the model’s exclusions. Existing order tools remain equity replay tools; this calculator does not place option trades. No REST calculator endpoint is provided in this version.