Covered call
intermediateneutralStrategy parameters
Greeks (current)
Delta
68.484
Gamma
-4.131
Theta
5.461
Vega
-10.187
Rho
-2.453
Payoff diagram
P&L at expiryP&L today (theoretical)Current spot
Key metrics
Net cost
$9,832.58
Debit (paid)
Max profit
$667.42
Max loss
-$9,832.58
Breakevens
$98.33
Scenarios at expiry
| Move | Spot | P&L at expiry | % of cost |
|---|---|---|---|
| -20% | $80.00 | -$1,832.58 | -18.6% |
| -10% | $90.00 | -$832.58 | -8.5% |
| -5% | $95.00 | -$332.58 | -3.4% |
| +0% | $100.00 | $167.42 | 1.7% |
| +5% | $105.00 | $667.42 | 6.8% |
| +10% | $110.00 | $667.42 | 6.8% |
| +20% | $120.00 | $667.42 | 6.8% |
Mechanics & risks
How it works
You own 100 shares per contract and sell one call against them. You collect a premium; if the stock rallies past the strike, your shares are called away.
When to use
You're long-term bullish but expect short-term flatness, and want to generate income from the position.
Risks
- Upside is capped at the strike + premium.
- Downside is the same as owning the stock minus the premium.
- Tax implications when shares are called away.