Covered Call Calculator

Cost: Free
System Requirements: Microsoft Excel® 2003 or later*
User Agreement: Read it Here
Creator: Michael Levin
                MLevin@GenuineTrading.com
                954-762-7446
                SKYPE: toptrader99
                Twitter: Prosperousguy
Covered Call
File Size: 41 kb
File Type: xls
Download File
+1 This Page
Watch a short video on using this spreadsheet here.
Picture
Description: This is a dynamic covered call option calculator that allows you to enter basic information and see which options might be best to sell against a long (owned) stock or ETF position.

After entering the following info:
  1. Amount of shares (round numbers to the hundred only)
  2. Stock symbol
  3. Current Price

Then choose:
  1. Which Month to sell
  2. Days to expiration (Can be found on many websites like www.optionshouse.com) or count from current day to the 3rd Friday of the month chosen)
  3. Strike Price
  4. Option Premium (choose bid price)

Then click “enter” on your keyboard and the many calculations show up:

You can see:
  1. The static rates of return if the stock stays about the same price
  2. Actual % rates of return if called
  3. Annualized rates of return if called
  4. Varying returns depending on leverage used (margin)
  5. How much in $ returns based on the premium you collected upfront vs. waiting for return of appreciation in stock price to the strike sold
  6. Percentage returns based on the premium you collected upfront vs. waiting for return of appreciation in stock price to the strike sold
  7. How much the underlying vehicle must advance to be called
  8. Downside protection
  9. Ratios of both the downside protection vs. $ received upfront and a few other calculations
Note, all calculations are net of $1 per option commissions and $.01 per share in stock commissions
Watch a short video on using this spreadsheet here.
blog comments powered by Disqus
Disclaimer - the Spreadsheetshoppe.com does not take any responsibility for trades made using the information on this site. The information found here is being provided for educational / informational purposes only, any actions taken as a result of this information is strictly the responsibility of the user.  Trading financial instruments of any kind, including but not limited to, options, futures, and stocks carry significant potential risk.  No representation is made that by using the information on this site will or are likely to achieve profits or losses indicated.

This website, its owners, its associates and/or its representatives are not registered as securities broker-dealers or investment advisors with any state securities regulatory authority. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest with or without seeking advice from such an advisor or entity, then any consequences resulting from your investments are your sole responsibility.

Basically, use common sense and understand that the accuracy or validity of the information / calculations found on this site should not be construed as a recommendation to purchase or sell any type of security, or to provide investment advice. 

Other Useful Tools & Excel Templates
Question or comments?  Reach us Here

* Note, utilizing the features of this excel template requires Microsoft Excel® 2007 or later - this template/tool will work in 2003; however, the colors may be different than shown in the picture(s).