When the stock rises

Covered calls cap the gain above the strike. This workspace looks at XLF after it has risen past a strike, and at rolling the call up and out to keep the shares. The underlying was chosen to illustrate the idea; it isn't a recommendation. Quotes are delayed. Contracts last selected September 29, 2026.

The strike is below today's price, and the forecast range is set to a further rise. Across the whole range the line is flat: the shares will be called away at the strike, whatever happens next.

A call at a higher strike and a later expiration. The line keeps rising through more of the range. Compare Debit on the two trades: the difference is roughly what the roll costs, before the bid-ask spread.

Try another strike or expiration on the rolled call and watch the cost of the roll change. Nothing you change here is saved.

Read the lesson: When the stock rises.