Call Option Return Calculator

What is the rate of return on a stock option call investment? This calculator is very useful when trying to sell the most profitable calls for a stock. It can be used to quickly compare scenarios so you can choose the best scenario at a point in time.

Computes rate of return for calls sold in relation to capital at risk. The capital at risk is the amount of underlying stock which may be owned (for covered calls) or not owned (for naked calls).

Computes foregone capital gains if and when stock is called.

Covers these outcomes:

1) The calls expire. Rate of return is computed for the call premium over capital at risk.

2) The stock was called. Rate of return is computed for both call premium and capital gain. As well, foregone capital gain (calls were covered) or capital loss is calculated.

3) Calls were bought to close out position. Rate of return is computed on the difference in call premiums over capital at risk.