📈 Finance Tool
Stock Options Calculator – Calculate Call & Put Option Profit, ROI & Break-even Free
Free stock options calculator for calls & puts. Enter strike price, stock price, premium & contracts to instantly calculate profit, loss, ROI, break-even & moneyness.
CALL Option
Profit when stock rises
PUT Option
Profit when stock falls
Strike Price
$150.00
$50
$100
$150
$200
$500
Stock Price at Expiry
$170.00
$120
$140
$160
$170
$200
Option Premium (per share)
$5.00
$1
$3
$5
$10
$20
Number of Contracts
1 (100 shares)
1
2
5
10
25
◀ Set prices to see moneyness
TOTAL PROFIT / LOSS
—
ROI: —% • Max Loss: —
Total Cost
—
Intrinsic Value
—
Profit / Share
Break-even
—
Max Loss
—
Shares Covered
🔮 P&L at Different Stock Prices
⋅ Approximate Option Greeks
Δ
Delta
—
Price sensitivity
Θ
Theta
—
Time decay/day
Λ
Leverage
—
Options leverage
%
Max ROI
—
At current prices
ⓘ Greeks are simplified estimates for educational purposes. Use a full options pricing model (Black-Scholes) for precise values.
📖 How to Use the Stock Options Calculator
Calculating options profit and risk takes just seconds. Here is what each input means and how to interpret your results.
1
Choose Call or Put
Select CALL if you expect the stock to rise above the strike price by expiry. Select PUT if you expect it to fall below the strike price. Your entire premium is at risk if the option expires out of the money.
2
Enter the Strike Price
The strike price (exercise price) is the price at which you have the right to buy (call) or sell (put) the underlying stock. For a call, you profit if the stock rises above this level; for a put, you profit if it falls below it.
3
Enter Stock Price at Expiry
Enter your forecast or target price for the stock on the option expiry date. Try different price scenarios to understand your risk and reward profile across a range of possible outcomes.
4
Enter the Option Premium
The premium is the price you paid per share for the option contract. One contract controls 100 shares. If you paid $5 premium for 1 contract, your total cost is $500. This is your maximum possible loss.
5
Set Number of Contracts
Standard US equity options represent 100 shares per contract. Entering 5 contracts means you control 500 shares and paid 5 × $500 = $2,500 in total premium. Scale up or down to match your position size.
6
Read Your Results
The calculator instantly shows total profit/loss, ROI, intrinsic value, profit per share, break-even price, and maximum loss. The P&L scenario section shows results at 6 different stock price levels simultaneously.
💡 Key Options Trading Tips
- Your maximum loss when buying options is always capped at the total premium paid — you cannot lose more than 100% of your investment.
- Break-even for a call = Strike + Premium. Break-even for a put = Strike − Premium. The stock must move beyond these levels for a profit at expiry.
- Options lose value as time passes (theta decay). An option that is not in the money will approach zero value as expiry approaches, even if the stock stays flat.
- This calculator shows intrinsic value at expiry. Before expiry, options also have time value (extrinsic value) which requires Black-Scholes or similar models to price accurately.
- Always consider the implied volatility (IV) of the option — high IV means expensive premiums. Buying options when IV is unusually high can hurt profitability even if your directional view is correct.
📚 Complete Options Trading Guide
Understanding the fundamentals of options is essential before trading them. Here is everything you need to know about how options work, their value components, and key concepts.
What Is a Call Option?
A call option gives the buyer the right (but not the obligation) to buy 100 shares at the strike price before expiry. Buyers profit when the stock rises above the strike + premium. Max profit is theoretically unlimited; max loss is the premium paid.
What Is a Put Option?
A put option gives the buyer the right to sell 100 shares at the strike price before expiry. Buyers profit when the stock falls below the strike − premium. It is commonly used as portfolio insurance. Max loss is always capped at premium paid.
In, At & Out of the Money
In the Money (ITM): For calls, stock > strike. For puts, stock < strike. At the Money (ATM): stock price equals strike. Out of the Money (OTM): for calls, stock < strike; for puts, stock > strike. ITM options have intrinsic value; OTM options do not.
Intrinsic vs Time Value
Option Premium = Intrinsic Value + Time Value (Extrinsic Value). Intrinsic value is the immediate exercise profit. Time value reflects the probability of further price movement before expiry. As expiry approaches, time value decays to zero (theta decay).
Break-even Calculation
Call break-even = Strike Price + Premium Paid. Put break-even = Strike Price − Premium Paid. These are the exact stock prices at expiry where your profit equals zero. Any move beyond these levels means profit; any less means loss.
Leverage Effect
Options provide leverage because controlling 100 shares costs only the premium, not the full share price. A $5 premium on a $150 stock means you control $15,000 of stock for $500. A 10% stock move can produce 100%+ option returns — but also 100% losses.
📊 Call vs Put Comparison
| Feature | CALL Option | PUT Option |
|---|---|---|
| Market View | Bullish (expect rise) | Bearish (expect fall) |
| Profit When | Stock > Strike + Premium | Stock < Strike − Premium |
| Break-even | Strike + Premium | Strike − Premium |
| Max Profit | Unlimited (stock can rise indefinitely) | Strike − Premium (stock can only go to $0) |
| Max Loss | Premium paid (100%) | Premium paid (100%) |
| Common Use | Speculate on upside / leverage gains | Hedge portfolio / speculate on downside |
⚖ Common Options Strategies
Options can be combined in many ways to create specific risk-reward profiles. Here are the most widely used strategies for different market outlooks.
1
Long Call
Buy a call option when you expect the stock to rise significantly. Your risk is capped at the premium paid; your upside is theoretically unlimited. Ideal for capturing big upside moves with defined maximum risk. Best when implied volatility is low.
2
Long Put
Buy a put option when you expect the stock to fall. Commonly used to hedge an existing long stock position against downside risk. The put rises in value as the stock falls, offsetting portfolio losses. Also used to speculate bearishly with limited risk.
3
Bull Call Spread
Buy a lower-strike call and sell a higher-strike call. This reduces the net premium paid (lower cost), but caps your maximum profit. Ideal when you are moderately bullish and want to reduce the break-even point compared to a plain long call.
4
Bear Put Spread
Buy a higher-strike put and sell a lower-strike put. Reduces the cost of the trade versus buying a naked put, at the expense of capping the maximum profit. Best for moderately bearish views where you expect a moderate decline, not a crash.
5
Covered Call
Own 100 shares and sell a call option against them to collect the premium. This generates income from the premium but caps your upside at the strike price. One of the most popular income strategies for long-term stock holders seeking to boost returns.
6
Protective Put
Own shares and buy a put to protect against a large decline. Acts like insurance — you pay the premium to guarantee a minimum sell price. Unlike stop-loss orders, it provides downside protection without risk of being stopped out by intraday volatility.
❓ Frequently Asked Questions
Common questions about stock options, how to calculate profit, and what each term means.
How do I calculate stock option profit?
For a call option: Profit = max(0, Stock Price − Strike Price) − Premium, multiplied by 100 shares per contract. For a put: Profit = max(0, Strike Price − Stock Price) − Premium, times 100. If intrinsic value (the max(0,...) part) is less than the premium paid, you have a loss. The maximum loss is always the premium paid.
What is the break-even price for a call option?
Call break-even = Strike Price + Premium Paid. For example, if you buy a call with a $150 strike and pay $5 premium, your break-even at expiry is $155. The stock must close above $155 for you to profit. Below $155, you lose some or all of your premium. Below $150, the option expires worthless and you lose the full premium.
What is the break-even price for a put option?
Put break-even = Strike Price − Premium Paid. If you buy a put with a $150 strike and pay $4 premium, your break-even is $146. The stock must close below $146 for you to profit at expiry. Above $146, you lose some premium; above $150, the put expires worthless and you lose the full premium paid.
What does "1 options contract" mean?
In the US markets and most global markets, one standard equity options contract controls 100 shares of the underlying stock. If an option has a premium (price) of $5, one contract costs $500 (5 × 100). Buying 10 contracts controls 1,000 shares and costs $5,000 in total premium. This 100-share multiplier is why options provide significant leverage.
What is intrinsic value in options?
Intrinsic value is the immediate exercise profit of an option. For a call: max(0, Stock Price − Strike). For a put: max(0, Strike − Stock Price). An option with positive intrinsic value is "in the money" (ITM). Options that are "out of the money" (OTM) have zero intrinsic value. Before expiry, an option's market price (premium) also includes time value.
What is the maximum loss when buying an option?
The maximum loss when buying (long) a call or put option is always limited to the total premium paid. You cannot lose more than 100% of your investment. This is one of the key advantages of buying options versus other leveraged instruments. If the option expires worthless (out of the money), you lose the entire premium — but nothing more.
What is "in the money," "at the money," and "out of the money"?
In the Money (ITM): The option has intrinsic value. A call is ITM when stock price > strike; a put is ITM when stock price < strike. At the Money (ATM): Stock price approximately equals the strike price. Out of the Money (OTM): No intrinsic value. A call is OTM when stock < strike; a put is OTM when stock > strike. ITM options are more expensive but have lower leverage; OTM options are cheaper but require a larger move to profit.
What are the option Greeks?
The Greeks measure different aspects of options risk. Delta measures how much the option price moves per $1 move in the stock. Theta measures daily time value decay. Gamma measures the rate of change of delta. Vega measures sensitivity to implied volatility changes. Rho measures sensitivity to interest rate changes. Delta and theta are the most important for most individual option buyers to understand.
Why does an option lose value over time even if the stock stays flat?
This is called theta decay (time decay). Every day that passes, the probability of the option reaching profitability decreases, and therefore the time value portion of the premium erodes. This decay accelerates as expiry approaches, especially in the final 30 days. Theta decay is why buying options with lots of time remaining (longer expiry) is generally safer for beginners.
How are options different from buying shares directly?
Shares give you direct ownership with unlimited upside and downside (to zero). Options give you leveraged exposure with a defined maximum loss (the premium). A 10% rise in a $150 stock earns $15 per share if you own it. The same 10% rise could earn $500 or more on a $500 call option investment — but if the stock stays flat or falls, you lose the entire $500 premium. Options expire; shares do not.
Does this calculator include time value (extrinsic value)?
This calculator shows the profit and loss based on intrinsic value at expiry — meaning it calculates what the option is worth if held to expiration. It does not calculate real-time option pricing which includes time value before expiry. For that, a full Black-Scholes model with implied volatility, risk-free rate, and time to expiry is needed. This tool is best used for planning expiry-day scenarios and understanding your profit/loss outcomes.
Are options available globally, not just in the USA?
Yes. Options are traded on major exchanges worldwide including the Chicago Board Options Exchange (CBOE) in the USA, Euronext, the London International Financial Futures Exchange (LIFFE), the Australian Securities Exchange (ASX), the National Stock Exchange (NSE) in India, and many others. Contract sizes and settlement rules may differ by exchange — the 100-share-per-contract standard applies to US equity options. Always check your local exchange rules.
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