What is my options profit?
Enter the option, the strike, the premium and a stock price at expiration to see your profit or loss. The charts show every price at once.
- Profit or loss at expiration
- $1,000.00
If the stock is at $115.00 at expiration, this option position gives $1,000.00.
- Return on premium
- 200%
- Break-even stock price
- $105.00
- Most you can make
- Unlimited
- Most you can lose
- $500.00
- Total premium
- $500.00
- Black-Scholes value now
- $3.5911
- Profit or loss if closed now
- -$140.89
- Delta
- 0.5324
Profit or loss at expiration: $1,000.00. If the stock is at $115.00 at expiration, this option position gives $1,000.00.
Profit or loss at expiration
Profit or loss if closed now (Black-Scholes)
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Computes the profit or loss of buying or selling a call or put option at expiration, its break-even price, most profit and most loss, and its Black-Scholes value before expiration, with payoff charts.
Example with the default inputs (Option Call, You Buy, Strike price $100.00, Premium per share $5.00, Contracts 1, Stock price at expiration $115.00, Stock price now $100.00, Volatility (yearly) 30%, Risk-free rate (yearly) 4%, Days to expiration 30, Dividend yield (yearly) 0%): If the stock is at $115.00 at expiration, this option position gives $1,000.00.
Method: At expiration a call is worth max(S − K, 0) and a put max(K − S, 0) per share; profit = (value − premium) × 100 × contracts for a buyer, the negative for a seller. Before expiration: Black-Scholes-Merton, C = S e^(−qT) N(d₁) − K e^(−rT) N(d₂), P = K e^(−rT) N(−d₂) − S e^(−qT) N(−d₁).
- Every price, the volatility and the rate are typed; no quote is looked up.
- Each contract covers 100 shares. Commissions and taxes are not included.
- The Black-Scholes value is for a European option held to its expiry, with a constant volatility, rate and dividend yield (continuously compounded) and T = days ÷ 365. An American option can be worth a little more.
- This is an estimate, not investment advice.
Worked examples
Each example is checked against the calculator on every build.
- Option Call, You Buy, Strike price $70.00, Premium per share $2.20, Contracts 1, Stock price at expiration $65.00 gives Profit or loss at expiration -$220.00, Total premium $220.00, Break-even stock price $72.20, Most you can lose $220.00, Most you can make Unlimited, Return on premium -100%.Source: SEC Investor.gov, An Introduction to Options, Investor Bulletin: break even at $72.20 and a $220 loss when the call expires worthless (https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-63)
- Option Put, You Buy, Strike price $70.00, Premium per share $2.20, Contracts 1, Stock price at expiration $60.00 gives Profit or loss at expiration $780.00, Break-even stock price $67.80, Most you can make $6,780.00, Most you can lose $220.00.Source: SEC Investor.gov, An Introduction to Options, Investor Bulletin: the ABC December 70 put at $2.20 breaks even at $67.80 (https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-63)
- Option Call, You Buy, Strike price $40.00, Premium per share $3.00, Contracts 1, Stock price at expiration $42.00, Stock price now $42.00, Volatility (yearly) 20%, Risk-free rate (yearly) 10%, Days to expiration 182.5, Dividend yield (yearly) 0% gives Black-Scholes value now $4.76, Profit or loss at expiration -$100.00, Profit or loss if closed now $175.94, Delta 0.779131.Source: Hull (2018), Options, Futures, and Other Derivatives, 10th edition, chapter 15: the call is worth $4.76
- Option Put, You Buy, Strike price $40.00, Premium per share $1.00, Contracts 1, Stock price at expiration $42.00, Stock price now $42.00, Volatility (yearly) 20%, Risk-free rate (yearly) 10%, Days to expiration 182.5, Dividend yield (yearly) 0% gives Black-Scholes value now $0.81, Profit or loss at expiration -$100.00, Delta -0.220869.Source: Hull (2018), Options, Futures, and Other Derivatives, 10th edition, chapter 15: the put is worth $0.81
- Option Call, You Sell (write), Strike price $100.00, Premium per share $5.00, Contracts 2, Stock price at expiration $120.00 gives Profit or loss at expiration -$3,000.00, Most you can make $1,000.00, Most you can lose Unlimited, Break-even stock price $105.00, Return on premium -300%.Source: SEC Investor.gov, An Introduction to Options, Investor Bulletin: the writer of a call must sell at the strike (https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins-63)
How the options profit is worked out
The position. A call or a put, bought or sold (written), with a strike K, a premium p per share and a number of contracts c. Each contract covers 100 shares, so the position covers 100 × c shares. The total premium is p × 100 × c: paid when you buy, received when you sell.
At expiration, for a stock price S at expiration, in exact decimal arithmetic from the numbers as typed:
- The option is worth max(S − K, 0) per share for a call and max(K − S, 0) for a put.
- Profit or loss for a buyer = (worth − p) × 100 × c. For a seller it is (p − worth) × 100 × c.
- Return on premium = profit ÷ total premium × 100. It is left out when the premium is $0.
- Break-even stock price = K + p for a call, K − p for a put. A put break-even below $0 is left out.
- Most you can make: a bought call is Unlimited; a bought put makes at most (K − p) × 100 × c (at a stock price of $0); a sold option makes at most the total premium.
- Most you can lose, as a positive amount: a bought option loses at most the total premium; a sold call is Unlimited; a sold put loses at most (K − p) × 100 × c, or $0 when p is at least K.
Before expiration (Black-Scholes-Merton). When the stock price now S₀, the volatility σ and the days to expiration are filled in (the rate r and the dividend yield q count as 0% when empty), with T = days ÷ 365 and σ, r and q as decimals (continuously compounded yearly rates):
- d₁ = (ln(S₀ ÷ K) + (r − q + σ² ÷ 2) × T) ÷ (σ × √T), and d₂ = d₁ − σ × √T.
- Call value C = S₀ × e^(−qT) × N(d₁) − K × e^(−rT) × N(d₂).
- Put value P = K × e^(−rT) × N(−d₂) − S₀ × e^(−qT) × N(−d₁).
- N is the standard normal cumulative distribution.
- Delta (for a buyer, per share) = e^(−qT) × N(d₁) for a call and −e^(−qT) × N(−d₁) for a put.
- Profit or loss if closed now = (value − p) × 100 × c for a buyer, (p − value) × 100 × c for a seller.
If the stock price now, the volatility or the days are empty, these three results are left out. A value that is not a finite number is no answer. These are floating-point results, shown as money to the cent (the value per share to 4 decimals) and delta to 4 decimals.
Charts. The first chart draws the profit or loss at expiration for stock prices from 60% of the lowest to 140% of the highest of the strike, the price at expiration and the price now, with a marker at the price at expiration. The second draws the profit or loss if closed now across the same prices, with a marker at the price now.
Limits. Strike above $0 and at most $1 million; premium from $0 to $1 million; 1 to 100,000 contracts; stock prices from $0 (at expiration) or above $0 (now) to $10 million; volatility above 0% and at most 500%; rate from −10% to 50%; dividend yield from 0% to 50%; days above 0 and at most 3,650.
Display. Money to the cent, rounded half up; the return to 2 decimals.
Assumptions
- Every price, the volatility and the rate are typed; nothing is looked up.
- Commissions, fees and taxes are not included.
- The Black-Scholes value is for a European option held to expiry, with a constant volatility, rate and dividend yield. An American option, which can be exercised early, can be worth a little more.
- This is an estimate, not investment advice.
Worked examples by hand
The SEC’s call. Buy a $70 call for $2.20, 1 contract. Total premium = 2.20 × 100 = $220. Break-even = 70 + 2.20 = $72.20. With the stock at $65 at expiration the call is worth 0, so the profit is (0 − 2.20) × 100 = −$220, a return of −100%. The most you can lose is $220; the most you can make is Unlimited.
The SEC’s put. Buy a $70 put for $2.20, 1 contract, stock at $60 at expiration. The put is worth 70 − 60 = $10 a share, so the profit is (10 − 2.20) × 100 = $780. Break-even = 70 − 2.20 = $67.80. The most you can make is (70 − 2.20) × 100 = $6,780.
Hull’s Black-Scholes example. S₀ = 42, K = 40, σ = 0.20, r = 0.10, q = 0, 182.5 days (T = 0.5). d₁ = (ln 1.05 + (0.10 + 0.02) × 0.5) ÷ (0.2 × √0.5) = 0.7693; d₂ = 0.6278. C = 42 × N(0.7693) − 40 × e^(−0.05) × N(0.6278) = $4.7594; P = 40 × e^(−0.05) × N(−0.6278) − 42 × N(−0.7693) = $0.8086. A call bought for $3 is then worth (4.7594 − 3) × 100 = $175.94 more than it cost; at expiration with the stock at $42 it would give (2 − 3) × 100 = −$100. Delta is N(0.7693) = 0.7791 for the call and −0.2209 for the put.
Writing two calls. Sell 2 calls with a $100 strike for $5. Total premium received = 5 × 200 = $1,000, the most you can make. With the stock at $120 the calls are worth $20 a share, so the profit is (5 − 20) × 200 = −$3,000, a return of −300% on the premium. Break-even = $105; the most you can lose is Unlimited.
Other questions people ask
How do I calculate the profit on a call option?
At expiration a call is worth the stock price minus the strike, or nothing if the stock is below the strike. Take off the premium and multiply by 100 shares per contract. A call with a $70 strike bought for $2.20 is worth $10 a share with the stock at $80: (10 − 2.20) × 100 = $780 profit. If the stock ends at $65 the call expires worthless and you lose the $220 premium.
How do I calculate the profit on a put option?
At expiration a put is worth the strike minus the stock price, or nothing if the stock is above the strike. A put with a $70 strike bought for $2.20 is worth $10 a share with the stock at $60: (10 − 2.20) × 100 = $780 profit.
What is the break-even price of an option?
For a call it is the strike plus the premium; for a put, the strike minus the premium. The SEC’s example: a $70 call bought for $2.20 breaks even at $72.20, and a $70 put at $2.20 breaks even at $67.80. It is the same price for the buyer and the seller.
What happens when I sell (write) an option?
You receive the premium, and your profit and loss are the buyer’s turned around. The most you can make is the premium. Writing a call can lose without limit, because the stock can keep rising; writing a put can lose up to the strike minus the premium, times 100 shares.
What does the Black-Scholes value mean?
It is a model price for the option today, before expiration, from the stock price now, the strike, the volatility, the risk-free rate, the days left and the dividend yield. Hull’s textbook example (stock $42, strike $40, 20% volatility, 10% rate, six months) gives a call worth $4.76 and a put worth $0.81. The “if closed now” profit compares that value with your premium.
Why does the value before expiration differ from the value at expiration?
Before expiration an option also has time value: the chance that the stock moves further before the option expires. That is why the “if closed now” line is a curve that lies above the expiration payoff for a buyer. On the expiration date the time value is gone.
Does the calculator fetch option quotes?
No. You type the premium, the stock prices, the volatility and the rate, so the page never sends anything and gives the same answer every time. Take them from your broker’s option chain.