Options Profit Calculator
Payoff and profit for calls and puts at expiration.
What it does
Options at expiration are simple arithmetic hiding inside jargon. The contract pays its intrinsic value, the premium stays spent or kept, and the difference is profit before costs.
The tool above takes side, type, strike, premium, and the stock price at expiration. It returns payoff with profit per share and per 100 share contract, so writers see the mirror image of buyers on the same line.
The defaults buy a $50 strike call for $3 with the stock at $58: $8.00 payoff, $5.00 profit per share, $500.00 per contract. Flip to short and the same market reads minus $5.00 a share with premium kept as the only cushion.
Definitions follow SEC investor guidance with FINRA options pages matching: calls convey the right to buy at the strike, puts the right to sell, premium is nonrefundable, and out of the money contracts expire worthless.
How to use
- Pick long (buy) or short (write).
- Pick call or put.
- Enter strike and premium per share.
- Enter stock price at expiration.
- Read payoff first.
- Read profit per share and per contract.
Formula
- S
- Underlying price at expiration.
- K
- Strike price of the contract.
- premium
- Per share price paid (long) or received (short).
- 100
- Shares per standard equity contract.
Expiration kills time value, so only intrinsic value pays. American exercise, dividends, assignment, commissions, and spreads sit outside this line; the math here is per share before costs, times 100 for the contract.
Worked example
Example: long $50 call, $3 premium, stock $58
Defaults: long call, strike 50, premium 3, underlying 58.
- Payoff: max(58 - 50, 0) = $8.00 a share.
- Profit: 8 - 3 = $5.00 a share.
- Contract: 5 x 100 = $500.00.
- Breakeven: 50 + 3 = $53.
- Below $50 the call expires worthless, losing $3.
- Tool shows $8.00, $5.00, $500.00 per contract.
Reference table
| Position | Payoff | Profit |
|---|---|---|
| Long call | $8.00 | $5.00 |
| Short call | $8.00 | -$5.00 |
| Long put | $0.00 | -$3.00 |
| Short put | $0.00 | $3.00 |
Limits
- Expiration only; time value ignored.
- Commissions and spreads excluded.
- Assignment needs cash or shares behind it.
- Early exercise sits outside this line.
Common mistakes
- Forgetting premium in profit.
- Pricing per contract as per share.
- Assuming worthless means costless to close.
- Ignoring assignment on short options.
- Trading earnings size without a plan.
Try it yourself
Quick checks. Answers sit tucked under each question.
Long put 100/4 at 90?
$10.00 payoff, $6.00 profit, $600.00 a contract.
Short call 50/3 at 58?
$8.00 payoff, -$5.00 a share, -$500.00 a contract.
When does a long call profit?
Stock above strike plus premium; here above $53.
Questions
What is option payoff?
Intrinsic value at expiration: stock minus strike for calls, reversed for puts, floored at zero.
How is profit different?
Profit subtracts premium paid (long) or adds premium kept (short) around the payoff.
What is breakeven?
Strike plus premium for long calls; strike minus premium for long puts.
What if it expires out of the money?
Payoff zero; buyers lose the premium, sellers keep it.
How big is one contract?
Standard equity contracts cover 100 shares.
Can writers lose more than premium?
Yes; uncovered calls face theoretically unlimited loss past the strike.