Option Payoff Calculator

An option's value at expiry depends only on where the underlying price ends up relative to the strike. This calculator shows the profit or loss at expiry for a single option position, long or short, call or put, after the premium paid or received. It gives the result at a price you choose, the break even price, the maximum profit and the maximum loss, plus a table of outcomes at prices from 30% below to 30% above the strike. It is a quick way to understand the risk of a trade before placing it.

Calculator#

How it works#

Call value at expiry = max(Price - Strike, 0)
Put value at expiry = max(Strike - Price, 0)
Long P&L = (Value at expiry - Premium) × Shares per contract × Contracts
Short P&L = (Premium - Value at expiry) × Shares per contract × Contracts
Break even: call = Strike + Premium, put = Strike - Premium

Commissions and early exercise are ignored. Before expiry, an option also has time value; use the Black-Scholes and Greeks Calculator to estimate it. See Option Payoff Diagrams.

The four basic positions#

Multiply the per share figures by 100 for a standard US equity option contract.

Beyond single options#

Spreads combine options to shape the payoff: a bull call spread caps both profit and loss, an iron condor profits in a range, a straddle profits from big moves. Building them leg by leg helps you understand each one. See Vertical Spreads, Iron Condor and Straddle.

Things to remember#

1. Short options can lose far more than the premium collected.
2. Probability matters: a cheap far out of the money option has a low chance of paying off. See Moneyness: ITM, ATM and OTM.
3. Expiry is not the only outcome: most options are closed before expiry at their market value. See Intrinsic and Extrinsic Value.
4. Assignment risk applies to short American style options. See Exercise and Assignment.
5. Volatility changes affect option prices before expiry. See Volatility Crush and Expansion.

Trying scenarios#

Switch between long and short, and between calls and puts, keeping the same strike and premium. The table below the results shows how each position behaves as the price moves 30% either way. Notice that long options have a fixed worst case, while short calls have no ceiling on losses. Seeing the four shapes side by side is one of the fastest ways to learn options.

Frequently asked questions#

How do I calculate option profit at expiry?#

Find the option's value at expiry (how far it is in the money), subtract the premium paid for a long position or subtract it from the premium received for a short position, then multiply by the contract size.

What is the break even for a call option?#

The strike price plus the premium paid per share.

What is the maximum loss on a long option?#

The premium paid, if the option expires worthless.

Next, value options before expiry with the Black-Scholes and Greeks Calculator.