How the options Profit Calculator works
At expiration an option is worth only its intrinsic value: for a call, the stock price above the strike; for a put, the strike above the stock. Your profit is that value minus the premium you paid, or the reverse if you sold the option and collected the premium.
Call P/L = (max(S − K, 0) − premium) × 100 × contracts
Example: buying one $100 strike call for $3.00 costs $300. At $110 the option is worth $10, so the trade makes $700. Below $100 the whole $300 premium is lost, and $103 is the breakeven.
Frequently asked questions
What does breakeven mean for options?
It is the stock price at expiration where the trade neither makes nor loses money. For calls it is strike plus premium, for puts strike minus premium.
Why is selling a call listed as unlimited loss?
A stock can rise without limit, and an uncovered short call loses dollar for dollar above the breakeven. That is why brokers require special approval and margin for it.
Does this work before expiration?
This calculator shows value at expiration only. Before then, options also carry time value, so market prices will differ from these numbers, especially far from expiry.