Canadian Derivatives Exchange*

Covered Call Calculator

How it works

The covered call calculator enables conservative investors to find option series that can generate their desired levels of current and potential returns.

The potential total return is the sum of two components: the option premium return and the potential capital gain.

% ?
% ?

The option premium return is obtained by dividing the options premium by the current price of the stock. This result is annualized by multiplying by 365 days and dividing by the number of days until the options' expiry. To be eligible, an option must have a return higher than the one entered in the "Premium return" field.

The potential capital gain is obtained by subtracting the market price of the stock from the option's strike price. The result is then divided by the market price of the stock. Note that this number can be negative.

The data is annualized by multiplying by 365 days and dividing by the number of days until the options' expiry. To be eligible, an option must have a potential gain higher than the one entered in the "Potential capital gain" field.

Note that options with a bid equal or less than 0.20 will not be displayed in the search results. Transaction fees on these options would greatly reduce the total potential return obtained.