Options Profit Calculator — Stock Options P&L & Strategy
Calculate the profit and loss on stock options positions. Enter strike price, premium, and current stock price to see P&L, break-even, max profit, and loss scenarios for calls and puts.
Option price per share
1 contract = 100 shares
Current P&L
−$100.00 (−25.00%)
ITM
Break-even at Expiry
$154.00
Intrinsic Value (per share)
$3.00
Time Value (per share)
$1.00
Max Profit
Unlimited ∞
Max Loss
−$400.00
Total Premium Paid
$400.00
Theoretical Price
$6.96
Underpriced vs model
Delta (Δ)
+0.6781
Gains $68/contract per $1 rise (68Δ)
Gamma (Γ)
0.0340
Delta changes by 0.0340 per $1 rise
Theta (Θ)
−0.0814
Loses $8.14/day per contract
Vega (ν)
0.1634
Gains $16.34/contract per 1% IV rise
Rho (ρ)
0.0796
Gains $7.96/contract per 1% rate rise
Greeks calculated using Black-Scholes model with 5.00% risk-free rate. d1=0.3695, d2=0.2978, T=0.0822yr.
| Scenario | Stock Price | P&L | P&L % |
|---|---|---|---|
| −20% | $122.40 | −$400.00 | −100.00% |
| −10% | $137.70 | −$400.00 | −100.00% |
| Current | $153.00 | −$100.00 | −25.00% |
| +10% | $168.30 | +$1,430.00 | +357.50% |
| +20% | $183.60 | +$2,960.00 | +740.00% |
* P&L calculated using intrinsic value only. Real mark-to-market prices include time value (theta) and vega — actual P&L before expiry will differ.
Last reviewed · How we check our calculators
How to Use the Options Profit Calculator
The calculator gives a snapshot of a single US equity option position — a long call, a long put used as insurance, or a short option sold for premium income.
- Option Type — Call profits from a rising stock; Put profits from a falling stock or hedges shares you own.
- Position — Long (Buy) if you paid the premium; Short (Sell/Write) if you received it.
- Strike Price and Current Stock Price — the contract's fixed price and the latest quote for the underlying.
- Premium per Share — the quoted option price. A contract shown as "$550" is $5.50 per share.
- Number of Contracts — each standard contract covers 100 shares.
- Days to Expiry and Implied Volatility — shown for context; they drive the option's time value but do not change the expiry P&L.
As you type, the result shows the current profit or loss, moneyness (ITM / ATM / OTM), intrinsic and time value, the break-even price at expiry, the maximum profit and loss, and a scenario table for −20%, −10%, current, +10% and +20% stock moves.
Important: P&L is based on intrinsic value, i.e. what the position is worth at expiry. Before expiry, the market price of an option also contains time value and reacts to implied volatility, so your broker's mark-to-market figure will differ.
The Formula
All options P&L calculations start with one concept: intrinsic value — the amount the option would be worth if exercised right now. Combine intrinsic value with the premium paid or received, and you have a complete picture of your position.
Intrinsic Value (per share)
- Call: max(0, Current Stock Price − Strike Price)
- Put: max(0, Strike Price − Current Stock Price)
Intrinsic value is always non-negative. When the stock price is below the call strike (or above the put strike), intrinsic value is zero — the option is out-of-the-money.
Time Value (per share)
Time value = max(0, Premium − Intrinsic Value). Time value represents the market's compensation for the possibility that the option moves in-the-money before expiry. It decays to zero at expiration (theta decay), which is why options writers profit from the passage of time while options buyers are hurt by it.
Total Premium
Total Premium = Premium per Share × 100 × Number of Contracts. One US equity options contract covers exactly 100 shares. A $5.50 premium on 2 contracts equals $1,100 total.
P&L Formulas by Position Type
Long Call
- P&L = (Intrinsic Value − Premium) × 100 × Contracts
- Break-even at Expiry = Strike Price + Premium
- Max Loss = Total Premium Paid
- Max Profit = Unlimited (stock can rise indefinitely)
Long Put
- P&L = (Intrinsic Value − Premium) × 100 × Contracts
- Break-even at Expiry = Strike Price − Premium
- Max Loss = Total Premium Paid
- Max Profit = (Strike Price − Premium) × 100 × Contracts
Short Call (Naked or Covered)
- P&L = (Premium − max(0, Stock Price − Strike)) × 100 × Contracts
- Break-even = Strike Price + Premium
- Max Profit = Total Premium Received
- Max Loss = Unlimited (naked) or capped by stock floor (covered)
Short Put
- P&L = (Premium − max(0, Strike − Stock Price)) × 100 × Contracts
- Break-even = Strike Price − Premium
- Max Profit = Total Premium Received
- Max Loss = (Strike Price − Premium) × 100 × Contracts
Moneyness
An option is ITM (in-the-money) when it has intrinsic value, OTM when it has none, and the calculator labels it ATM when the stock is within ±0.5% of the strike — where time value and sensitivity to implied volatility are highest.
Practical Examples
Example 1 — Long Call on Tesla (TSLA): Leveraged Directional Bet
A trader is bullish on Tesla ahead of a product launch. TSLA is trading at $240. They buy 2 contracts of the $250 call expiring in 30 days at a premium of $5.50 per share.
- Strike: $250 | Current price: $240 | Premium: $5.50
- Total premium paid: $5.50 × 100 × 2 = $1,100
- Status: OTM (stock below strike) | Break-even: $255.50
- Max loss: $1,100 | Max profit: Unlimited
If TSLA surges to $270 after the announcement: Intrinsic value = $20; P&L = ($20 − $5.50) × 200 = +$2,900 — a 264% return on the $1,100 investment. If TSLA stays below $250 at expiry, the full $1,100 premium is lost: leverage and defined risk in one trade.
Example 2 — Long Put as Portfolio Hedge (SPY ETF)
An investor holds $100,000 in the S&P 500 via SPY at $500 per share (200 shares). Concerned about a market correction, they buy 2 SPY put contracts at a $490 strike for $8.00 per share.
- Strike: $490 | Current SPY: $500 | Premium: $8.00
- Total premium paid: $8.00 × 200 = $1,600 (the cost of insurance)
- Break-even: $490 − $8 = $482
- Max profit: ($490 − $8) × 200 = $96,400 (theoretical maximum if SPY → $0)
If SPY falls to $460: Intrinsic = $30; Put P&L = ($30 − $8) × 200 = +$4,400. This partially offsets the −$8,000 loss on the 200 SPY shares. If SPY stays above $490, the puts expire worthless and the $1,600 premium was the cost of the insurance.
Example 3 — Covered Call: Generating Monthly Income on MSFT
An investor owns 100 shares of Microsoft at $415. Rather than waiting for price appreciation, they sell 1 MSFT $430 call for a premium of $4.80 to collect monthly income.
- Strike: $430 | Current MSFT: $415 | Premium received: $4.80
- Total premium received: $4.80 × 100 = $480
- Effective cost basis reduced to: $415 − $4.80 = $410.20
- Max profit (if called away at $430): ($430 − $415 + $4.80) × 100 = $1,980
If MSFT stays below $430 at expiry, the investor keeps the $480 premium and owns the shares — an annualized yield of approximately 13.9% ($480 × 12 / $41,500). If MSFT rallies above $430, the shares are called away at $430, capping the upside at the $1,980 total return.
Example 4 — Cash-Secured Put: Getting Paid to Wait for a Lower Entry
A trader wants to buy Apple (AAPL) but only at $180 (current price: $193). Instead of placing a limit order, they sell 1 AAPL $180 put expiring in 30 days for a premium of $3.20.
- Strike: $180 | Current AAPL: $193 | Premium received: $3.20
- Total premium received: $3.20 × 100 = $320
- Effective buy price if assigned: $180 − $3.20 = $176.80
- Max loss: ($180 − $3.20) × 100 = $17,680 (if AAPL → $0)
If AAPL stays above $180, the put expires worthless and the trader pockets $320 — paid to wait. If AAPL falls to $175, they are assigned 100 shares at $180 but their effective cost is $176.80. The broker holds $18,000 of cash as collateral while the put is open — hence "cash-secured".
Frequently Asked Questions
A stock option is an exchange-listed contract giving the buyer the right, but not the obligation, to buy (call) or sell (put) 100 shares at a fixed strike price until expiration. The buyer pays a premium to the seller for that right. Standard monthly options expire on the third Friday of the month; many popular stocks and ETFs also list weekly, and some daily, expirations. Buyers risk only the premium; sellers collect it upfront but take on substantial, sometimes unlimited, risk.
A long call profits when the stock rises above the strike plus the premium; a long put profits when it falls below the strike minus the premium. Calls are used for bullish bets, puts for bearish bets or to hedge shares you own. The long call has unlimited upside; the long put's upside is capped because a stock cannot fall below zero. Both risk only the premium paid. Selling either option flips the payoff: you keep the premium but carry the matching risk.
An option is in-the-money when it has intrinsic value: a call whose strike is below the stock price, or a put whose strike is above it. ITM options cost more because that value is already in the price. Out-of-the-money options are cheaper but need a bigger move to pay off and expire worthless more often. At-the-money options carry the most time value.
Time value is the part of the premium above intrinsic value — what the market pays for the chance of a further move before expiry. It shrinks as expiration approaches, and the decay speeds up in the final weeks. Option buyers need the stock to move far enough, fast enough, to outrun that decay; option sellers benefit from it, because the option they sold loses value as time passes.
A covered call is selling one call against 100 shares you own. The premium lowers your cost basis and cushions small declines, but it caps your gain at the strike if the stock rallies, and it offers only a small buffer if the stock falls sharply — you still own the shares. It suits flat-to-slightly-bullish views; it is less risky than owning the shares alone, but it is not low risk.
Sources
- John C. Hull, Options, Futures, and Other Derivatives (11th ed.) (Pearson, 2021)
- Sheldon Natenberg, Option Volatility and Pricing (2nd ed.) (McGraw-Hill, 2015)
- Fischer Black and Myron Scholes, The Pricing of Options and Corporate Liabilities (Journal of Political Economy, 1973)
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