Atomic60 Trading Calculator: Calculate your stock market risk and gains
Picture

Trade OptimizerTM

14 Profesional Trading Calculators for 
position sizing and trade analysis

  • Risk Management
  • Profit Optimization
  • Maximize Gains. Minimize Losses

Download Here from App Store
Stars

Home
  1. Fixed Shares
  2. Fixed Dollar
  3. Fixed Dollar RIsk
  4. Portfolio Percent
  5. Fixed Fractional
  6. ATR Sizer
  7. Kelly Criterion
  8. Covered Calls
  9. Long Options
  10. Risk Reward Ratio
  11. Profit / Loss
  12. Expectancy
  13. Average Down
  14. Compounding
App Support
FAQ
Terms of Use

Calculator # 8
Covered Call Calculator

"Covered Call: Buy stock, sell options. Net returns."

Description:
Buy Stock shares and Sell equal number of option Call contracts. The Covered Call calculator takes all commissions into count giving you a true Net return. 

Terms:
ITM:  In the money. This refers to an option having a positive intrinsic value.
OTM: Out the money. Meaning the option has no intrinsic value and will have no value at expiration. You do however still keep the proceeds from selling the original Call.

Example
I own 300 shares of ABC stock at $50.00 per share. I think the stock will move to $60 within days. I sell 3 call options at $60 strike price for $4.50. This nets me $1,340. If the stock closes above $60, I will net $4,333 which includes the premium I received  plus the growth in value from the stock moving from $50 to $60. This results in a 31% return on my trade. 

If the stock does not reach $60, I still keep the $1,340 premium and keep my stocks which in turn lowers my stock ownership price from $50 to $45.55. Not bad.
Covered Call

Powered by Create your own unique website with customizable templates.
  • Home
  • App Support
  • App FAQ
  • App Terms of Use