Covered call
Hold stock and write a call against it. Reduces your cost basis and generates income, but caps upside above the strike. Most common income strategy.
INPUTS
Underlying price
$
Centers the payoff chart and computes P&L at this price.
Stock position
Shares
Entry
$
LEGS
Short call
Type
Side
Strike
$
Qty
Premium
$
RESULT
$60.001 strike$140.00
P&L at current spot (expiry)
+$150
Net debit−$9,850
Max profit+$650
Max loss−$9,850
Breakeven$98.50
Risk / reward0.07 : 1
Stock cost basis+$10,000
Premium received+$150
RISK PROFILE
Max profit
(Strike − stock entry) × shares + premium
Max loss
(Stock entry × shares) − premium received
Breakeven
Stock entry − (premium ÷ shares)
RELATED STRATEGIES
NEXT
Done planning? Log the trade.
Sutekka journals every leg automatically — and shows you the actual P&L when you close it. Free forever.
Start logging — free