What this calculator solves
Covered calls can turn stock holdings into premium income, but they also cap upside above the short call strike. The calculator keeps the trade-off visible before you compare it with other option structures.
Formula
Maximum profit equals (strike - stock cost + call premium) x shares when the strike is above the stock cost. Downside breakeven equals stock cost minus call premium. Expiration P/L uses the lower of stock price and strike, then adds premium.
Example
Buy 100 shares at $100 and sell a 108 call for $3. Max profit is ($108 - $100 + $3) x 100 = $1,100, while downside breakeven is $97.
Risk reminder
The premium does not remove stock downside. A sharp drop can still create large losses, and early assignment can happen around dividends or deep in-the-money calls.