EMT Investing Covered Call Roll Down

Transaction Costs

Transaction costs are shared between tools so you only have to enter your transaction costs one time.

  1. Select the TRANSACTION COSTS tab.
  2. Enter the commission costs and fees you pay. The change indicator ( Changes) appears when changes have been made and not saved.
  3. Click the SAVE button to save your cost information.

Calculator

  1. Select the CALCULATOR tab.
  2. In the spaces provided enter the following information:
    • The stock (ticker symbol)
    • The number of shares. The number of option contracts is calculated based on the number of shares so this should be an even multiple of 100
    • The price per share for the stock
    • The strike price of the original call option
    • The per share premium received for the original call option
    • The per share premium to buy back the original call option
    • The strike price of the new (rolled-down) call option
    • The per share premium received for the new (rolled-down) call option
  3. Calculated results update automatically.
  4. To store the scenario currently in the calculator click the ADD TO SCENARIOS button.
  5. If you are editing a scenario the button will say UPDATE SCENARIO instead of ADD TO SCENARIOS. Pressing the button causes the scenario to be updated in the scenario table.
  6. Use the NEW button when editing if you want to save changes as a new scenario instead of updating the existing one. The NEW button causes the UPDATE SCENARIO button to revert to ADD TO SCENARIOS. After clicking NEW click ADD TO SCENARIOS to actually add the scenario to the table.
  7. The change indicator ( Changes) appears when changes have been made and not saved. Click the SAVE button to save your changes.

Scenario Table

  1. Select the SCENARIOS tab.
  2. The scenario table is displayed showing key information for the scenarios you have added to the table.
  3. To delete an entry in the scenario table click the delete icon () on that table row.
  4. To display or edit an entry in the scenario table click the edit icon () on that table row.
  5. To clear the entire scenario table click the CLEAR TABLE button
  6. The change indicator ( Changes) appears when changes have been made and not saved. Click the SAVE button to save your changes.

Also Good to Know

  1. Clicking SAVE on any tab saves transaction costs, the calculator information, and the scenario table.
  2. Some calculations require assumptions so check the footnotes on the calculator page to understand the assumptions made.
  3. Use of this tool constitutes agreement with the Terms and Conditions of Use
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