Options Profit Calculator

Calculate potential profit/loss with interactive payoff charts

Select Strategy

Long Call: Buy a call option to profit from upward price movement. Limited risk (premium paid), unlimited profit potential.

Underlying Stock

Option Legs

Additional Parameters (for Greeks)

Profit/Loss Summary

Max Profit
$0.00
Max Loss
$0.00
Break-Even
$0.00

Payoff Diagram at Expiration

Option Greeks (Current Position)

Delta (Δ)
0.00
Gamma (Γ)
0.00
Theta (Θ)
0.00
Vega (ν)
0.00

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How Options Profit Calculators Work

An options profit calculator helps traders visualize potential profit and loss scenarios before entering a trade. It computes the payoff at expiration based on the option's strike price, premium paid or received, and the underlying stock's price at expiration.

Basic Formulas:

Long Call Profit:

Max(Stock Price - Strike, 0) - Premium

Long Put Profit:

Max(Strike - Stock Price, 0) - Premium

The calculator generates a payoff diagram showing profit/loss across a range of stock prices. This visualization helps you understand your risk-reward profile before committing capital.

Understanding P/L Diagrams

A payoff diagram (P/L chart) shows your potential profit or loss at different stock prices at expiration:

  • X-axis: Stock price at expiration
  • Y-axis: Profit (+) or Loss (-)
  • Break-even point: Where the line crosses zero
  • Green zone: Profitable price ranges
  • Red zone: Loss-making price ranges

The characteristic "hockey stick" shape of options payoffs comes from the asymmetric risk-reward structure—limited downside with potentially unlimited upside for long options.

Options Strategies Explained

Strategy Market View Max Profit Max Loss
Long Call Bullish Unlimited Premium paid
Long Put Bearish Strike - Premium (if stock goes to $0) Premium paid
Covered Call Neutral to slightly bullish Strike - Cost Basis + Premium Cost Basis - Premium (if stock goes to $0)
Protective Put Bullish with protection Unlimited Cost Basis - Strike + Premium
Bull Call Spread Moderately bullish Strike Difference - Net Premium Net Premium paid
Bear Put Spread Moderately bearish Strike Difference - Net Premium Net Premium paid
Straddle Expecting large move (either direction) Unlimited Total Premium paid
Strangle Expecting large move (either direction) Unlimited Total Premium paid

Option Greeks Explained

Option Greeks measure sensitivity to different factors:

Delta (Δ)

Measures price change per $1 move in stock. A delta of 0.50 means the option moves $0.50 for every $1 stock move. Also approximates probability of finishing in-the-money.

Gamma (Γ)

Measures how Delta changes per $1 stock move. High gamma means Delta is unstable and will change rapidly. Highest for at-the-money options near expiration.

Theta (Θ)

Measures time decay per day. Options lose value as expiration approaches. Long options have negative theta (lose money daily), short options have positive theta.

Vega (ν)

Measures sensitivity to 1% change in implied volatility. Higher vega means more sensitive to volatility changes. Long options benefit from rising volatility.

Frequently Asked Questions

The best options profit calculator provides accurate P/L calculations, interactive payoff charts, support for multiple strategies (calls, puts, spreads), Greeks display, and break-even analysis. Our free calculator includes all these features with a clean, easy-to-use interface and real-time calculations as you adjust parameters.

An options profit calculator shows your potential profit or loss at different stock prices at expiration. The X-axis represents the underlying stock price, while the Y-axis shows profit (positive) or loss (negative). The break-even point is where the line crosses zero. Green areas indicate profit zones, red areas indicate loss zones.

An options profit calculator computes the intrinsic value of your option at various stock prices. For a call option: Profit = Max(Stock Price - Strike Price, 0) - Premium Paid. For a put option: Profit = Max(Strike Price - Stock Price, 0) - Premium Paid. The calculator plots these values across a range of potential stock prices to create the payoff diagram.

Options profit calculators are highly accurate for calculating profit/loss at expiration. The payoff at expiration is mathematically certain based on the strike price and premium. However, for options before expiration, the actual value depends on time decay (theta), volatility changes, and other factors.

A covered call calculator determines profit/loss when you own 100 shares and sell a call option against them. You input your stock cost basis, the call strike price, and premium received. Maximum profit is capped at (Strike - Stock Cost + Premium). The premium received provides downside protection but limits upside potential.

Put option profit = Max(Strike Price - Stock Price at Expiration, 0) - Premium Paid. For example, if you buy a $50 put for $3 and the stock falls to $40: Profit = ($50 - $40) - $3 = $7 per share ($700 per contract). Maximum loss is limited to the premium paid. Break-even is Strike - Premium.

Option Greeks measure how option prices change with different factors. Delta measures price sensitivity to stock movement. Gamma measures how Delta changes. Theta measures time decay per day. Vega measures sensitivity to volatility changes. Understanding Greeks helps you manage risk and predict how your options position will behave.

Both strategies profit from large price movements. A straddle uses the same strike price for both call and put (typically at-the-money), costing more but requiring less movement to profit. A strangle uses different strikes (out-of-the-money call and put), costing less but requiring a larger move to become profitable.

Option spread profit is calculated by combining the P/L of each leg. For a bull call spread (buy lower strike call, sell higher strike call): Max Profit = Strike Difference - Net Premium. Max Loss = Net Premium Paid. Break-even = Lower Strike + Net Premium. Our calculator handles all spread calculations automatically.

Yes! Our options profit calculator supports multi-leg strategies including spreads, straddles, and strangles. You can also build custom strategies by adding individual legs. Each leg's P/L is calculated separately and then combined to show the total position's payoff diagram.

Need to calculate implied volatility?

Use our IV Calculator to reverse-calculate IV from option market prices.

IV Calculator

How many contracts should you trade?

Our Position Size Calculator helps determine optimal position sizing using percentage risk, Kelly Criterion, or ATR methods.

Position Size
Disclaimer: This calculator is for educational and informational purposes only. It does not constitute financial advice. Options trading involves significant risk and is not suitable for all investors. Always consult a qualified financial advisor before trading options. Past performance does not guarantee future results.

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