Call & Put Option Calculator
Profit, loss, and breakeven at any stock price, per share and per contract.
Profit or loss at expiry
Estimates for planning only, not financial advice.
Options turn a stock opinion into defined math. A call profits when the stock rises past the strike plus the premium; a put profits when it falls past the strike minus the premium. Enter the option type, strike, premium, and the stock price you want to test, and the calculator returns profit or loss per share and per contract, the breakeven price, and the maximum gain and loss. With the defaults, a $100 call bought for $5 with the stock at $112 pays $7 a share, $700 per contract.
How to Use This Calculator
Pick call or put and whether you are buying or selling. Enter the strike price and the premium per share as quoted (remember the quote multiplies by 100 per contract). Then enter the stock price at expiry you want to test: your forecast, a stress case, or the current price. The result shows P&L at that price, breakeven, max profit, and max loss, so you see the full risk picture before committing capital.
Select call or put, long or short. Beginners should start with buying; selling has very different risk.
Enter strike and premium per share. Multiply the premium by 100 in your head to feel the real contract cost.
Test several expiry prices: your target, the breakeven, and a bad case. If the bad case is unacceptable, the position is too big or the wrong structure. Compare defined-risk alternatives with our credit spread calculator.
The Payoff Formulas
At expiry an option is worth exactly its intrinsic value: how far in the money it is, or zero. Everything you paid above that is gone. That is why the breakeven sits one premium beyond the strike: the stock must cover both the distance to the strike and the price of the ticket. Short positions mirror this: you keep the premium if the option expires worthless and lose as it moves against you, which is why selling naked calls carries theoretically unlimited risk.
Worked Examples
Call example: buy a $100 strike call for $5 premium, 1 contract ($500). Stock at $112 at expiry: option value is $12, profit is $12 - $5 = $7 per share, $700 total, a 140% return on the $500 risked. Stock at $103: option worth $3, loss of $2 per share. Stock at or below $100: option worthless, lose the full $500. Breakeven is $105. Put example: buy a $100 strike put for $4 ($400), stock falls to $88: option worth $12, profit $8 per share, $800 total. Breakeven $96; maximum profit $96 per share if the stock goes to zero.
Long vs Short at a Glance
| Position | Max profit | Max loss | Wins when |
|---|---|---|---|
| Long call | Unlimited | Premium paid | Stock rises past breakeven |
| Long put | Strike minus premium | Premium paid | Stock falls past breakeven |
| Short call | Premium received | Unlimited | Stock stays below strike |
| Short put | Premium received | Strike minus premium | Stock stays above strike |
The table is the whole risk story: buyers risk little to make a lot, sellers collect small steady premiums against occasional large losses. Neither side is "better"; they are different trades for different views and temperaments. If the unlimited-loss rows make you uncomfortable, that discomfort is information: use spreads, which cap both sides, instead of naked short positions. Our credit spread calculator prices those defined-risk structures, and our present value calculator handles the time-value thinking behind longer-dated options.
Estimates for planning only, not financial advice.
Frequently Asked Questions
How does a call option make money?
A call gives you the right to buy a stock at the strike price. You profit when the stock finishes above the strike by more than the premium you paid. With a $100 strike call bought for $5 and the stock at $112, the option is worth $12 at expiry, so your profit is $7 per share, or $700 per contract. Below $100 the option expires worthless and you lose the $5 premium.
How does a put option make money?
A put gives you the right to sell a stock at the strike price, so it profits when the stock falls. Buy a $100 strike put for $4 and the stock drops to $88: the option is worth $12, your profit is $8 per share. Puts are insurance against falling prices or a direct bet on decline. Maximum profit is the strike minus the premium, reached if the stock goes to zero.
What is the breakeven price for an option?
For a call, breakeven is the strike price plus the premium paid: a $100 call bought for $5 breaks even at $105. For a put, it is the strike minus the premium: a $100 put bought for $4 breaks even at $96. At breakeven the option's expiry value exactly offsets what you paid. This calculator shows both breakevens instantly for any inputs.
What is the most I can lose buying an option?
The premium you paid, nothing more. That is the defining appeal of buying options: your downside is capped at 100% of a small amount while your upside on a call is theoretically unlimited. A $500 premium can never lose $501. Selling options is the mirror image, with capped income and potentially large losses, which is why beginners are usually told to start on the buying side.
What does "in the money" mean?
A call is in the money when the stock price is above the strike; a put is in the money when the stock is below the strike. At the money means stock equals strike; out of the money is everything else. Only in-the-money options have value at expiry. Before expiry, out-of-the-money options still have time value, which is why they trade above zero.
How many shares does one option contract control?
One standard US equity option contract controls 100 shares. All the per-share numbers in this calculator multiply by 100 for the contract total: a $7 per-share profit is $700 per contract, and a $5 premium costs $500 per contract. Always do the contract math before trading, because the premium quoted as $5.00 is really a $500 commitment.
What is time decay (theta)?
Time decay is the daily erosion of an option's value as expiry approaches, all else equal. An option is a wasting asset: each passing day removes some of the chance the stock makes the move you need. This calculator shows expiry payoff, the endpoint after all time value is gone. In real trading, you can profit before expiry if the stock moves fast enough to overcome the decay.
Should I exercise an option or sell it?
Usually sell it. Exercising a call means putting up the cash to buy 100 shares per contract at the strike; selling the option captures nearly the same value without the capital. Exercise only makes sense in specific cases, like capturing a dividend or when the option trades below its intrinsic value. For most retail traders, the sell button is the exit.
What is implied volatility and why does it matter?
Implied volatility is the market's forecast of how much the stock will move, baked into the option's price. Higher implied volatility means pricier options for both calls and puts, because bigger expected moves make the option more likely to pay off. Buying before earnings often means overpaying on volatility that collapses after the announcement, a phenomenon traders call IV crush.
Can I lose more than my investment with options?
Buying options: no, losses stop at the premium. Selling naked calls: yes, theoretically unlimited, since a stock can rise without bound. Selling naked puts: losses can reach the strike price if the stock goes to zero. Spreads cap both sides by combining a bought and sold option, which is why this calculator's companion tools for spreads show max profit and max loss explicitly. See our credit spread calculator for the defined-risk version.