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 = ?