Deep ITM Covered Call – Strike Optimizer (P/E Aware)

Deep ITM Covered Call – Strike Optimizer (P/E Aware)


⚖️ Rule
DITM Strike Selection (P/E-Aware)Match strike depth to valuation risk:
  • Moderate P/E (≤35): pick a middle strike (balance exit + float).
  • Elevated (35–80): go one step deeper (more float, still positive exit).
  • Hyper (>80): choose the lowest strike with some exit gain — maximize float.
Calculator uses float earnings (no double-counting) and can auto-test a P/E-based downside scenario.
Enter 1% or 0.01
Guides strike depth & scenario weight
Moderate: −20%, Elevated: −30%, Hyper: −40%
Compounds for 26 months.
Total (Called) = (K+P−Cost)×Shares + Float Earnings. | Total @ ST = ([min(K,ST)+P−Cost]×Shares) + Float Earnings. | Return % = Total ÷ Locked Capital; CAGR % annualizes Return % over months to expiry.
Best (Called): 500 P/E-aware (Moderate): 500
Strike Premium/Share Effective Exit /Share Breakeven /Share Float Released (× Sh) Ending Float Value Float Earnings (× Sh) Capital Gain (Called) Total (Called) Return % (on Locked) CAGR % (on Locked)
500.00 $110.00 $610.00 $407.00 $11,000.00 $14,247.82 $3,247.82 $9,300.00 $12,547.82 30.83% 13.20%
450.00 $138.00 $588.00 $379.00 $13,800.00 $17,874.54 $4,074.54 $7,100.00 $11,174.54 29.48% 12.67%
400.00 $171.00 $571.00 $346.00 $17,100.00 $22,148.88 $5,048.88 $5,400.00 $10,448.88 30.20% 12.95%
380.00 $185.00 $565.00 $332.00 $18,500.00 $23,962.24 $5,462.24 $4,800.00 $10,262.24 30.91% 13.24%
425.00 $0.00 $425.00 $517.00 $0.00 $0.00 $0.00 $-9,200.00 $-9,200.00 -17.79% -8.65%

*Locked Capital = Original Investment − Released Float. ROI and CAGR are computed on the locked capital base; totals use float earnings only (no double-counting principal).


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