Options Profit Calculator
Payoff at expiration for long or short calls and puts, with breakeven and max profit/loss.
Schedule
About this calculator
At expiration an option is worth only its intrinsic value: a call is worth the stock price minus the strike, a put the strike minus the stock price, and either is worth zero if that number is negative. A buyer profits when that value exceeds the premium paid; a seller keeps the premium minus whatever the option is worth. A standard US stock option contract covers 100 shares.
Worked example
Buy one $100 call for $4.50 a share and you pay $450. Your breakeven at expiration is $104.50. If the stock finishes at $115, the call is worth $15 a share ($1,500), a $1,050 profit; at $100 or below it expires worthless and you lose the $450.
The four basic positions
Buying a call profits if the stock ends above the strike plus the premium, and your loss is limited to the premium. Buying a put profits if the stock ends below the strike minus the premium. Selling a call earns the premium but has unlimited risk if the stock soars, unless you own the shares (a covered call). Selling a put earns the premium but obliges you to buy the shares at the strike if you're assigned.
What it leaves out
This shows the payoff on expiration day only. Before then an option also carries time value, which depends on volatility, interest rates and the days left, so its market price is usually above its intrinsic value. Commissions, early assignment and taxes aren't included.
Results are estimates for planning and education, assume constant rates, and ignore taxes and fees unless stated. Not financial advice.
Frequently asked questions
How do you calculate an option's breakeven price?
For a call, add the premium to the strike: a $100 call bought for $4.50 breaks even at $104.50 at expiration. For a put, subtract it: a $100 put bought for $4 breaks even at $96. The breakeven is the same for the buyer and the seller of the same option.
What's the most I can lose on an option trade?
If you buy a call or a put, the most you can lose is the premium you paid. If you sell a put, it's the strike minus the premium, times 100 shares per contract, if the stock goes to zero. Selling a call without owning the shares has unlimited risk.
Why does my option's price differ from this before expiration?
Before expiration an option's price includes time value on top of intrinsic value. Time value shrinks as expiration nears and moves with implied volatility, so estimating profit for an earlier date takes an option-pricing model such as Black-Scholes.