Options Profit Calculator
Profit and loss at expiry for any options position: max profit, max loss, breakevens and a payoff chart. Calls, puts, covered calls, spreads, iron condors and straddles.
A long call at a 100 strike costing 4.00 a share (one contract of 100 shares, $400) loses at most $400 and breaks even at 104 at expiry; at 115 it makes $1,100. An iron condor of 90/95/105/110 for a 2.00 net credit keeps $200 if the stock ends between 95 and 105 and loses at most $300.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Option
- A contract giving the right, not the duty, to buy (call) or sell (put) at a fixed strike price until expiry.
- Strike price
- The fixed price written into an option.
- Breakeven
- The price at which a trade neither makes nor loses money.
- Credit spread
- Selling one option and buying a cheaper one further out: you collect a premium and the loss is capped.
- Iron condor
- A put credit spread and a call credit spread together: profits if the price stays in a range.
- Covered call
- Owning 100 shares and selling a call against them for income, giving up gains above the strike.
An option's value at expiry depends only on where the stock ends up, so the profit or loss of any combination of options can be worked out exactly for every final price. Pick a strategy, adjust the strikes and premiums to the quotes you see, and the calculator gives the most you can make, the most you can lose, and the prices where you break even.
Premiums are per share, as quoted; one contract covers 100 shares for US stock options (set the contract size for index or other markets, such as 75 for the Nifty).
How profit at expiry is worked out
A call is worth max(price − strike, 0) at expiry; a put max(strike − price, 0). A buyer's profit is that value minus the premium paid; a seller's is the premium received minus that value; each multiplied by the contract size. The position's P/L is the sum over its legs. Because each leg is a straight line with one bend at its strike, the maximum profit and loss are found at the strikes, or are unlimited when the payoff keeps rising or falling beyond them.
Common strategies at a glance
| Strategy (stock at 100) | Legs | Max profit | Max loss | Breakeven |
|---|---|---|---|---|
| Long call | Buy 100 call @ 4 | Unlimited | $400 | 104 |
| Covered call | Own 100 shares, sell 105 call @ 2 | $700 | $9,800 | 98 |
| Iron condor | Buy 90 put, sell 95 put, sell 105 call, buy 110 call; 2.00 credit | $200 | $300 | 93 and 107 |
A covered call trades away the gains above the call strike for the premium. An iron condor profits when the stock stays in a range and has a fixed worst case. Long calls and puts risk only the premium but need a move bigger than the premium to profit.
Before expiry
Before expiry an option is also worth its time value, which depends on volatility and days left; the payoff here is the value on the expiry date. For today's theoretical value and the Greeks, use the Black-Scholes option price calculator. American-style stock options can be exercised early, especially calls just before a dividend.
Key takeaways
- Call at expiry = max(price − strike, 0); put = max(strike − price, 0).
- Buyer's profit = value − premium; seller's = premium − value; × contract size.
- Breakeven for a long call = strike + premium; for a long put = strike − premium.
- Selling naked calls has unlimited loss; spreads cap it.
Frequently asked questions
How do you calculate profit on a call option?
At expiry: (stock price − strike − premium) × 100 per contract if the stock is above the strike, otherwise you lose the premium. A 100 call bought for 4 with the stock at 115 makes (115 − 100 − 4) × 100 = $1,100.
What is the breakeven of a put option?
Strike minus the premium paid. A 50 put bought for 2 breaks even at 48 at expiry; below that it profits.
What is the max loss on an iron condor?
The width of the wider spread minus the net credit, times the contract size. A 5-wide condor for a 2.00 credit loses at most (5 − 2) × 100 = $300.
How much can you make on a covered call?
The call strike minus your stock cost, plus the premium. Shares bought at 100 with a 105 call sold for 2 make at most (105 − 100 + 2) × 100 = $700, if the stock is at or above 105 at expiry.
Does this work for Nifty or other index options?
Yes. Set the contract size to the lot size (for example 75 for Nifty) and enter premiums in points; the currency selector only changes the symbol.