Enter the current options value ($) and the options cost ($) into the Return On Options Calculator. The calculator will evaluate and display the Return On Options. 

Return On Options Formula

The following formula is used to calculate the Return On Options. 

ROO = (OV - OC) / OC * 100
  • Where ROO is the Return On Options (%)
  • OV is the current options value ($) 
  • OC is the options cost ($) 

How to Calculate Return On Options?

The following example problems outline how to calculate Return On Options.

Example Problem #1:

  1. First, determine the current options value ($).
    • The current options value ($) is given as: 150,000.
  2. Next, determine the options cost ($).
    • The options cost ($) is provided as: 30,000.
  3. Finally, calculate the Return On Options using the equation above: 

ROO = (OV – OC) / OC * 100

The values given above are inserted into the equation below and the solution is calculated:

ROO = (150,000 – 30,000) / 30,000 * 100 = 400 (%)

Example Problem #2: 

For this problem, the variables needed are provided below:

current options value ($) = 60,000

options cost ($) = 50,000

This example problem is a test of your knowledge on the subject. Use the calculator above to check your answer. 

ROO = (OV – OC) / OC * 100 = ?