Risk Disclaimer

1. Educational Purpose Only

The Covered Call Calculator is designed to help you understand how covered call options strategies work. It is a learning tool, not a trading tool.

2. Options Trading Risks

Options trading involves substantial risk and is not appropriate for all investors.

2.1 You Can Lose Money

• You can lose your entire investment or MORE
• Stock prices can fall to zero
• Options can expire worthless
• Losses can exceed your initial investment in some strategies
• Market volatility can cause rapid, unexpected losses

2.2 Covered Call Specific Risks

Even "conservative" covered call strategies have significant risks:

• Stock Decline: If the stock price falls, you will lose money on your stock position. The premium received may not offset the loss.
• Limited Upside: If the stock price rises above the strike price, your gains are capped. You may miss out on significant appreciation.
• Assignment Risk: Your shares can be called away at any time if the option is exercised early (especially before dividends).
• Opportunity Cost: Capital tied up in covered calls cannot be used for other investments.
• Tax Consequences: Options trading can have complex tax implications. Consult a tax professional.
• Dividend Risk: If your shares are called away before ex-dividend date, you will not receive the dividend.

2.3 Market Risks

• Volatility: Markets can move rapidly and unpredictably
• Liquidity: Some options may be difficult to trade
• Systematic Risk: Market-wide events can affect all securities
• Company-Specific Risk: Individual stocks can face unique challenges
• Economic Risk: Economic conditions affect market performance

3. No Guarantees or Warranties

3.1 Calculations Are Hypothetical

• All calculations assume ideal conditions that may not exist in real markets
• Calculations do not account for transaction costs, commissions, or taxes
• Calculations assume you can buy/sell at displayed prices (not always possible)
• Calculations do not predict future performance
• Market conditions change constantly and unpredictably

3.2 Data Accuracy

• Data Delays: Market data may be delayed by 15 minutes or more (unless you have real-time access)
• Third-Party Data: Data is provided by Polygon.io/Massive.com - we do not control its accuracy
• No Guarantee: We do not guarantee the accuracy, completeness, or timeliness of any data
• Technical Errors: Errors, delays, or interruptions may occur
• Your Responsibility: Always verify information independently before trading

3.3 Past Performance

4. You Are Responsible for Your Decisions

By using this service, you acknowledge that:

• You are solely responsible for evaluating the merits and risks of any investment
• You are solely responsible for any investment decisions you make
• You will not rely solely on this calculator for investment decisions
• You understand the risks of options trading
• You have the financial ability to bear losses
• You will independently verify all information
• You will consult with licensed professionals before investing

5. Required Professional Consultations

Before making ANY investment decision, you should consult with:

5.1 Financial Advisor

• A licensed, qualified financial advisor or investment professional
• Someone who understands YOUR specific financial situation
• Someone who is legally obligated to act in your best interest (fiduciary)

5.2 Tax Professional

• Options trading has complex tax implications
• Tax treatment varies by strategy, holding period, and jurisdiction
• A CPA or tax attorney can help you understand consequences

5.3 Legal Counsel (If Needed)

• For estate planning involving securities
• For questions about securities regulations
• For trusts, corporations, or complex entities

6. Regulatory Disclaimers

6.1 Not Registered Advisors

We are NOT:

• Registered investment advisors (RIA)
• Broker-dealers
• Financial planners
• Certified financial analysts
• Licensed securities professionals

6.2 No Broker-Dealer Relationship

• We do not execute trades
• We do not hold customer funds or securities
• We do not provide trade execution services
• We are not affiliated with any brokerage firm

6.3 Securities and Exchange Commission (SEC)

Before trading options, you should:

• Read the "Characteristics and Risks of Standardized Options" (available from your broker)
• Understand SEC rules regarding options trading
• Be approved by your broker for options trading
• Meet your broker's requirements for options account levels

6.4 FINRA

We are not affiliated with or regulated by the Financial Industry Regulatory Authority (FINRA). For investor education and complaint resources, visit www.finra.org.

7. Suitability

Options trading is NOT suitable for:

• Inexperienced investors
• Investors who cannot afford to lose their investment
• Investors who do not understand the risks
• Investors with low risk tolerance
• Investors without emergency savings
• Investors with high-interest debt
• Investors nearing retirement (without professional guidance)

8. No Endorsement or Recommendations

The appearance of any ticker symbol, stock, or option contract on this website does NOT constitute:

• An endorsement of that security
• A recommendation to buy or sell
• An opinion on the merits of that investment
• A prediction of future performance

Ticker symbols are provided for educational demonstration purposes only.

9. Limitation of Liability

TO THE MAXIMUM EXTENT PERMITTED BY LAW:

• We are not liable for any investment losses
• We are not liable for data errors or delays
• We are not liable for service interruptions
• We are not liable for any financial consequences of using our service
• You use this service entirely at your own risk

See our Terms of Service for complete liability limitations.

10. Third-Party Resources

For legitimate educational resources about options, see:

• CBOE (Chicago Board Options Exchange): www.cboe.com/education
• Options Industry Council: www.optionseducation.org
• SEC Investor.gov: www.investor.gov
• FINRA: www.finra.org

We are not affiliated with these organizations. They are provided as resources for your education.

11. International Users

This service is based in the United States and designed for U.S. securities markets. If you are located outside the United States:

• Regulations in your country may differ
• Tax treatment will vary by jurisdiction
• You are responsible for complying with local laws
• Consult professionals familiar with your country's regulations

12. Updates to This Disclaimer

We may update this disclaimer at any time. Check back regularly. Your continued use after updates constitutes acceptance.

13. Questions About Risk

If you have questions about the risks of options trading, contact:

• A licensed financial advisor
• Your brokerage firm's options specialist
• The Options Industry Council: 1-888-OPTIONS

Do NOT contact us for investment advice. We cannot and will not provide investment advice.