Options profit calculator for calls and puts

An option is a contract about a stock. It gives its buyer the right, but not the duty, to buy or sell the stock at a set price by a set date. This options profit calculator shows the profit or loss on a call or a put at expiration, for the buyer or the seller. It is a free tool for learning. Tactfolio does not trade options.

A call gains when the stock ends above the strike price. A put gains when it ends below.
One contract covers 100 shares, so a $5 premium costs $500.
A bought call breaks even at the strike plus the premium. A bought put breaks even at the strike minus the premium.
A buyer can lose at most the premium. A seller of a call can lose without limit.
Options can expire worthless. Selling options can lose far more than the premium you collect.

How to use the options profit calculator#

Pick call or put, and buy or sell. Type the strike price, the premium per share, the number of contracts, and a stock price at expiration. The calculator shows the profit or loss, the break-even price, and the most you can make or lose. Try a few stock prices to see how the result moves.

It shows the result at expiration only. Before then, an option’s price also depends on the time left and how much the stock swings. The calculator leaves out fees and early exercise.

How do you calculate options profit?#

At expiration, an option is worth how far the stock finished past the strike. If it finished on the wrong side, the option is worth nothing.

call value at expiration = stock price - strike, or 0 if that is below 0
put value at expiration = strike - stock price, or 0 if that is below 0
buyer's profit = (value at expiration - premium) × 100 × contracts
seller's profit = (premium - value at expiration) × 100 × contracts

The strike price is the price in the contract. The premium is what the buyer pays the seller for the option. Prices are quoted per share, so multiply by 100 for each contract.

A worked example with a call#

Say you buy 1 call with a $100 strike for a $5 premium. At expiration, the stock is at $110.

You paid $5 × 100 = $500.
The call is worth $110 - $100 = $10 a share, which is $1,000.
Your profit is $1,000 - $500 = $500.
The break-even price is $100 + $5 = $105.

If the stock ends at $100 or lower, the call expires worthless. You lose the $500 you paid.

A worked example with a put#

Say you buy 1 put with a $100 strike for a $4 premium. At expiration, the stock is at $90.

You paid $4 × 100 = $400.
The put is worth $100 - $90 = $10 a share, which is $1,000.
Your profit is $1,000 - $400 = $600. The break-even price is $96.

The most a put buyer can make is when the stock falls to $0. Here that is ($100 - $4) × 100 = $9,600.

What about selling options?#

The seller, also called the writer, takes the other side. The seller gets the premium up front. In the call example, the seller keeps the $500 if the stock ends at $100 or lower. At $110, the seller loses $500. At $130, the seller loses $2,500.

A stock has no top price. So selling a call without owning the shares has no limit on the loss. Selling a call on shares you own, called a covered call, works differently. The calculator shows an option on its own.

Options can expire worthless. Selling options can lose far more than the premium you collect.

Common mistakes with options#

Forgetting the 100. A $5 premium on one contract costs $500, not $5.
Being right about direction but still losing. A call buyer needs the stock above the break-even price, not only above the strike.
Treating premium from selling as free money. One big move can wipe out many small premiums.
Ignoring time. As expiration gets closer, an option tends to lose value if the stock stands still.

In the US, your broker must give you the guide “Characteristics and Risks of Standardized Options” before you can trade options. Read it first.

Try it on Tactfolio#

Tactfolio does not trade options. Its stock and ETF strategies are long only and hold US stocks, ETFs or cash. If you want to test a rule for investing in stocks and ETFs, the Tactfolio strategy builder backtests it on past prices. Why past results mislead explains what a backtest can’t tell you. To size a stock trade from its risk, try the position size calculator. To see how borrowing changes risk, try the leverage calculator. Every tool is on the free trading calculators page.

Common questions#

How do you calculate profit on a call option?#

At expiration, take the stock price minus the strike. If that is below zero, use zero. Take away the premium you paid. Multiply by 100 for each contract. A $100 call bought for $5 with the stock at $110 makes ($10 - $5) × 100 = $500.

What happens if my option expires worthless?#

If you bought it, you lose the premium you paid and nothing more. If you sold it, you keep the premium as your profit.

What does one options contract mean?#

One stock options contract usually covers 100 shares. A premium quoted as $2 costs $200 for one contract.

Can you lose more than you invest with options?#

A buyer can lose at most the premium. A seller can lose much more. Selling a call without owning the shares has no limit on the loss.

Premiums are quoted per share. Multiply by 100 to get the cost of one contract.

Sources

Options, Investor.gov, U.S. Securities and Exchange Commission, accessed October 16, 2026
Options, FINRA, accessed October 16, 2026
Characteristics and Risks of Standardized Options, The Options Clearing Corporation, accessed October 16, 2026