Enter strike, premium, and stock price to find profit or loss, breakeven, max gain, and max loss for calls and puts.
Options Profit Formula
For a long call, profit at expiration is the stock price minus the strike, minus the premium paid, with the intrinsic part floored at zero:
P = (max(0, S - K) - Prem) * 100 * N
For a long put, the intrinsic value works in the other direction:
P = (max(0, K - S) - Prem) * 100 * N
Variables:
- P is the total profit or loss at expiration ($)
- S is the stock price at expiration ($)
- K is the option strike price ($)
- Prem is the premium per share paid (long) or collected (short) ($)
- N is the number of contracts, each covering 100 shares
Short positions mirror these results: a seller’s profit is the premium collected minus the option’s intrinsic value at expiration. Pick the option type and position at the top of the calculator, enter the strike, premium, expected stock price, and contract count, and the tool returns total profit or loss, the profit per share, the breakeven stock price, the return on premium, and the maximum gain and loss for the position.
Profit Scenarios at Expiration
This table shows total profit for one long call contract with a $100 strike bought for a $2.50 premium ($250 per contract) at different expiration prices.
| Stock at expiration | Intrinsic value | Profit / loss | Return on premium |
|---|---|---|---|
| $95 | $0.00 | -$250 | -100% |
| $100 | $0.00 | -$250 | -100% |
| $102.50 | $2.50 | $0 | 0% (breakeven) |
| $105 | $5.00 | $250 | 100% |
| $110 | $10.00 | $750 | 300% |
| $120 | $20.00 | $1,750 | 700% |
The pattern is the reason options attract traders: losses are capped at the premium while call gains are uncapped, but the position expires worthless unless the stock clears the strike.
Example Problems
Example 1: Long call profit.
You buy 2 call contracts with a $50 strike for a $1.80 premium, and the stock closes at $55 at expiration.
Intrinsic value = 55 – 50 = $5.00. Profit per share = 5.00 – 1.80 = $3.20. Total = 3.20 * 100 * 2 = $640. Breakeven was 50 + 1.80 = $51.80.
Example 2: Long put that misses.
You buy 1 put with a $40 strike for a $2.00 premium and the stock closes at $43.
Intrinsic value = max(0, 40 – 43) = $0, so the put expires worthless. Loss = premium paid = 2.00 * 100 = $200, which was also the maximum possible loss.
Frequently Asked Questions
What is the breakeven price for an option?
For a call it is the strike plus the premium paid; for a put it is the strike minus the premium. At that stock price the option’s intrinsic value exactly repays what you spent, leaving zero profit before commissions.
Can I lose more than I paid for an option?
Not as a buyer. A long call or put can never lose more than the premium paid. Sellers face the opposite profile: a covered or cash-secured seller’s risk is defined, but a naked call seller has theoretically unlimited risk as the stock rises.
Why is my real profit different before expiration?
Before expiration an option also carries time value, so its market price is higher than intrinsic value alone. This calculator prices the position at expiration, when time value is zero. Closing early captures or forfeits whatever time value remains.
