Option Profit Sim

F Covered Call Calculator

Calculate max profit, max loss, breakeven and probability of profit for a Ford Motor Company (F) covered call. Adjust the strike and premium and the payoff chart updates instantly.

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Pre-loaded with F and the covered call — ready to edit.

F Covered Call — payoff at expirationexample @ $12
Max profit
$124
Max loss
-$1.18k
Breakeven
$12
Prob. of profit
57%

Illustrative example on a ~$12 share price and a 6-week expiration. Open the calculator for live pricing and to edit the strikes, premium and expiration.

F Covered Call: the essentials

Covered Call FAQ

Educational overview of how the strategy works — not financial advice.

What is a covered call on F?

You own 100 shares of Ford Motor Company (F) and sell one call option against them, collecting the premium up front. In exchange for that income you agree to sell your shares at the strike if F rises above it. It's an income strategy for shares you're already happy to hold.

How much can I make and lose on a F covered call?

Max profit is capped: the premium you collect plus any gain in the shares up to the strike (if called away). The downside is large but defined — you still own the shares, so if F falls the premium only cushions part of the loss, all the way down to a total loss if it went to $0.

What is the breakeven on a F covered call?

Your share cost basis minus the premium collected. Below that price the premium no longer covers your unrealized loss on the shares.

What happens if F rises above the strike?

Your shares are "called away" — sold at the strike. You keep the full premium plus the gain up to the strike, but you miss any move beyond it. That capped upside is the core trade-off: income now in return for giving up a big rally.

When is a covered call a good idea?

When you're neutral-to-mildly-bullish on F, own the shares, and would be content selling them at the strike — ideally when implied volatility is elevated so the premium is richer. Remember it's income, not a hedge: the only downside protection is the premium you collected.

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Figures are theoretical estimates for education only — not financial advice. Options involve risk.

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