How to Use the Options Profit Calculator
Our free options profit calculator helps you determine the potential profit or loss on your options trades before you execute them. Whether you're trading call options or put options, this calculator provides instant results with visual profit/loss charts.
Understanding Option Types
Call Options give you the right to buy stock at the strike price. Traders buy calls when they expect the stock price to rise above the strike price plus the premium paid.
Put Options give you the right to sell stock at the strike price. Traders buy puts when they expect the stock price to fall below the strike price minus the premium paid.
Long vs Short Positions
Long Position (Buying): When you buy an option, you pay a premium upfront. Your maximum loss is limited to the premium paid, while your profit potential depends on how much the stock moves in your favor.
Short Position (Selling): When you sell an option, you receive a premium. You profit if the option expires worthless, but you face potentially unlimited risk if the stock moves against you.
Key Terms Explained
Strike Price: The price at which the option can be exercised.
Premium: The cost to buy the option or the amount received for selling it.
Breakeven Point: The stock price at which your trade neither makes nor loses money.
Contract Multiplier: Each option contract represents 100 shares of the underlying stock.