Knowledge Base

Here is how we would calculate the % Assigned return for Covered Calls:

Appreciation = Strike Value - [Stock BID Price]
% Assigned return = [Call Premium Income + Appreciation] ÷ [Stock BID Price - Call Premium Income]

E.g. BTO XYZ (Stock) @ $24.50 and STO SEP07 25.00 XYZAB (Call) @ $1.20

Appreciation = $25.00 - $24.50 = $0.50
% Assigned return = [$1.20 + $0.50] ÷ [$24.50 - $1.20]
% Assigned return = 7.29% (if the stock gets assigned at $25 to cover the call write)