How Do You Calculate Covered Call ROI?

The formula is:
ROI = (Premium + [Strike − Cost Basis]) ÷ Cost Basis

If the stock is not called away (unassigned), ROI = Premium ÷ Cost Basis

This gives you a realistic view of upside potential and premium yield.

📊 Example Setup

• Cost Basis: $368

• Strike: $380

• Premium: $12.10

• DTE: 30

👉 Try this ROI setup in the calculator → https://bit.ly/tsla-call

🙋 FAQ

Q: Is ROI calculated with or without assignment?
A: You should calculate both — assigned return includes appreciation to the strike, unassigned just the premium.

Q: How do I annualize ROI?
A: Divide ROI by days to expiration, multiply by 365.

Q: Does assignment improve ROI?
A: Yes, if your strike is above your cost basis — that gain is added to your return.