Calculator · Options

Options profit calculator

Choose a call or a put, long or short, and enter the strike, the premium per share and the number of contracts. The calculator shows the result at the stock price you pick, the breakeven, the most the position can make or lose, and a payoff table.

Your numbers

A quote of 2.00 costs $200 per contract.
Usually 100; check after splits and mergers.

Profit or loss

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Breakeven

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Max profit

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Max loss

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The working

    What the numbers mean

    At expiration an option is worth only what it would pay if exercised. A call is worth the amount the stock sits above the strike, and a put the amount it sits below; anything on the wrong side of the strike is worth nothing. Take away the premium paid, multiply by the shares per contract and the number of contracts, and the result is the profit or loss.

    The breakeven is the strike plus the premium for a call and the strike minus the premium for a put. The stock has to get past that line by expiration before a buyer makes anything. A seller keeps the whole premium if the option expires worthless, which is why the short side shows a capped profit and, for an uncovered call, a loss with no limit.

    Using the payoff table

    The table walks the stock price across a range around the strike. Read it for the shape of the trade: a long option loses a fixed amount below the strike and gains steadily above the breakeven, while a short put collects a small amount across most of the table and loses heavily at the bottom. The case for pricing the bad week before selling a put uses exactly this table.

    For how much a short put can lose in the worst case, see how much you can lose selling a put. For sizing a long position by the premium at risk, see how many contracts to buy, and for the time value that expiration strips away, extrinsic value.

    Questions about this calculator

    Does the calculator include commissions?

    No. It shows profit and loss at expiration from the premium and the strike alone. Commissions, the bid-ask spread you pay to get in and out, and any fees your broker charges per contract all come off the result.

    Why does a short call show an unlimited loss?

    A stock has no upper limit on price, and the seller of an uncovered call has to deliver shares at the strike however high the stock goes. The loss keeps growing with the price, so no maximum can be stated. A covered call, written against shares you own, is a different position.

    Can I use it before expiration?

    Only as a rough guide. Before expiration an option still has time value, which depends on implied volatility and days left, so its price will differ from the expiration value shown here.

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