Break-Even Price
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Current P&L
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Max Loss
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When Should You Use an Options Profit Calculator?
Use this calculator whenever you are evaluating an options trade:
- Before entering a trade — know your max risk and break-even price before buying a call or put.
- During a trade — track your current profit or loss as the stock price moves.
- Comparing strategies — evaluate different strike prices and premiums to find the best setup.
- Managing risk — understand that your max loss is always limited to the premium when buying options.
How It Works
1
Choose Option Type
Select whether you are buying a call (bullish) or a put (bearish) option.
2
Enter Trade Details
Input the strike price, premium paid per share, and the current stock price.
3
See Your P&L
Instantly see your break-even price, current profit or loss, and maximum risk per contract.
Frequently Asked Questions
A call option gives you the right to buy a stock at the strike price, profiting when the stock rises above it. A put option gives you the right to sell at the strike price, profiting when the stock falls below it. Calls are bullish bets, puts are bearish bets.
The premium is the price you pay to buy an option contract. It represents your maximum possible loss when buying options. Each standard contract controls 100 shares, so a $2.00 premium costs $200 total. The premium is influenced by the stock price, strike price, time to expiration, and volatility.
For a call option, break-even equals the strike price plus the premium paid. For a put option, break-even equals the strike price minus the premium. The stock must move past the break-even point for you to profit at expiration. Before expiration, you may still profit from time value and volatility changes.
No. When you buy a call or put option, your maximum loss is limited to the premium you paid (times 100 shares per contract). This defined risk is one of the main advantages of buying options. However, selling (writing) options can expose you to much larger or even unlimited losses.
Intrinsic value is the amount an option is in-the-money. For a call, it is the current stock price minus the strike price (if positive). For a put, it is the strike price minus the current stock price (if positive). Options with no intrinsic value are called out-of-the-money and consist entirely of time value.