ReturnLab

Options Profit Calculator

See the payoff on a long option position — and the maximum loss you're actually risking.

Strike price

Premium paid (per share)

Contracts (100 shares each)

Underlying price at expiration

Profit / loss at expiration

$900

Total premium paid: $300
Total payoff: $1,200

What you entered

Option type: CallStrike price: $100Premium paid: $3/shareContracts: 1Price at expiration: $112

1
Intrinsic value at expiration (call)
max(0, $112.00 − $100.00)= $12.00/share
2
Total premium paid
$3.00/share × 100 shares (1 contract)= $300.00
3
Total payoff at expiration
$12.00/share × 100 shares= $1,200.00
4
Profit or loss
$1,200.00 − $300.00= $900.00

Result

Profit / loss: $900

At $112, this call finishes in the money enough to clear the $300 premium paid, for a $900 profit.

Profit on one call option, $100 strike bought for $5

One contract covers 100 shares, so a $5 premium costs $500. Each row is the outcome at expiration for the underlying price shown.

Price at expiration	Intrinsic value per share	Total cost	Payoff	Profit or loss
$90	$0.00	$500	$0	-$500
$100	$0.00	$500	$0	-$500
$105	$5.00	$500	$500	$0
$110	$10.00	$500	$1,000	$500
$120	$20.00	$500	$2,000	$1,500
$130	$30.00	$500	$3,000	$2,500

The break-even is $105 - the strike plus the premium - not $100, which is the single most common misunderstanding about buying calls. The option can finish in the money and still lose money, as the $100 and even a $103 outcome would. Loss is capped at the premium, $500 here, and that is the whole risk of a long call. Above break-even the profit rises one for one with the underlying, on 100 shares per contract, which is where the leverage comes from. This models the position held to expiration only: before expiry an option also carries time value, which decays as expiry approaches and is affected by volatility, so selling early gives a different result. Options can expire worthless and are not suitable for everyone.

Maximum loss is always capped

When you buy (rather than sell) an option, your maximum possible loss is the premium you paid — no more, even if the underlying moves sharply against you. That's the core appeal of buying options over owning the underlying outright.

In the money isn't the same as profitable

An option can finish in the money (have positive intrinsic value) and still be a net loss, if that intrinsic value doesn't exceed the premium you paid for it. Breakeven is strike ± premium, not strike itself.

Calls vs. puts explained

A call option gives you the right to BUY a stock at the strike price — you profit when the stock rises above strike + premium. A put option gives you the right to SELL at the strike price — you profit when the stock falls below strike − premium. Both cost the premium upfront, which is the most you can lose.

Frequently asked questions

How do I calculate options profit?

For a long call: Profit = (Stock Price − Strike Price − Premium) × 100 shares. Example: bought a $50 call for $3 premium, stock finishes at $58. Profit = ($58 − $50 − $3) × 100 = $500. For a long put: Profit = (Strike Price − Stock Price − Premium) × 100.

What is the breakeven price for an option?

Call breakeven = Strike Price + Premium paid. Put breakeven = Strike Price − Premium paid. If you buy a $50 call for $3.00, your breakeven is $53. The stock must rise above $53 for you to profit at expiration.

Can I lose more than the premium I paid?

Not as a buyer. Buying calls or puts limits your maximum loss to the premium. Selling (writing) options is different — selling naked calls has theoretically unlimited loss, and selling naked puts risks loss up to the strike price × 100 shares.