Member tool
Covered Strangle Visualizer
You own 100 shares, sell a put below the market and a call above it. Two premiums, one position — see exactly what each side pays and what assignment means.
Your trade
Type in the numbers from your broker screen. Everything updates as you type.
What you paid per share for the 100 shares you own.
Enter a cost basis above zero.
What the stock is trading at right now.
Enter a stock price above zero.
Short put
Enter a strike above zero.
Enter a premium of zero or more.
Short call
Enter a strike above the put strike.
Enter a premium of zero or more.
How many days until both options expire.
Enter zero or more days.
Profit / loss at expiry
Per 100 shares plus both short options, vs where the stock finishes on expiry day.
How the math worksEvery formula, in one line each
Covered Strangle Visualizer: questions
Straight answers about the trade this tool maps.
What is a covered strangle?
You own 100 shares, then sell a call above the market and a put below it. You collect two premiums on one position. If the stock rises past the call strike your shares are called away; if it falls below the put strike you buy 100 more. Our covered strangles guide walks through both cases.
How is a covered strangle different from a covered call?
A covered call sells only the call. The covered strangle adds a short put, which roughly doubles the premium but also commits you to buying a second 100 shares if the stock falls below the put strike. More income, and twice the stock exposure on the way down.
What happens if the put is assigned?
You buy another 100 shares at the put strike and now hold 200. The tool shows your average cost across all 200: your original cost basis plus the put strike, minus the total premium, divided by two. Size the position assuming that second lot can arrive.
Where is the downside breakeven?
The downside breakeven is your cost basis minus the total premium per share. Below that price the whole position — the shares plus both premiums — finishes underwater at expiry, and below the put strike the loss grows twice as fast because you own two lots.
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