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Options profit calculator: calls and puts at expiration

Calculate the profit or loss of buying or selling a call or put option at expiration, with break-even price, return and maximum loss.

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Results

Profit or loss

$999.35

Profit

Break-even price at expiration

$105.00

Return on premium
199.9%
Maximum loss (0 = unlimited)
$500.65
Premium paid or received
$500.00

How options pay off at expiration

An option gives the right, but not the obligation, to buy (call) or sell (put) 100 shares of a stock at a fixed strike price until expiration. The buyer pays a premium; the seller receives it and takes on the obligation.

Value at expiration

  • Call: max(stock price − strike, 0)
  • Put: max(strike − stock price, 0)

Profit for a buyer = (value at expiration − premium) × 100 × contracts − fees. A seller’s profit is the opposite.

Worked example

Buying 1 call with a $100 strike for $5 per share, with $0.65 of fees, and the stock at $115 at expiration:

  1. Value at expiration: 115 − 100 = $15 per share.
  2. Profit: (15 − 5) × 100 − 0.65 = $999.35.
  3. Return on the $500 premium: about 200%.
  4. Break-even at expiration: 100 + 5 = $105.
  5. Maximum loss: the premium plus fees, $500.65, if the stock ends at or below $100.

The four basic positions

Position View Maximum gain Maximum loss
Buy a call bullish unlimited premium
Buy a put bearish strike − premium premium
Sell a call neutral to bearish premium unlimited (if you do not own the shares)
Sell a put neutral to bullish premium strike − premium

Selling a call while owning the shares (a covered call) caps the upside of the shares but does not add unlimited risk.

Before expiration

Before expiration, an option is worth more than its intrinsic value because of time value, which depends on time left, volatility and interest rates. This calculator shows the result at expiration only. Selling earlier can lock in a gain or limit a loss.

Practical points

  • Standard U.S. equity options cover 100 shares; check the contract multiplier for other markets and adjusted contracts.
  • Short options require margin, and your broker may close positions if the account falls short.
  • Brokers require options approval levels based on experience; selling uncovered calls needs the highest level.
  • Gains and losses are generally taxed as capital gains; consult IRS Publication 550 for the details.

This calculator gives estimates for education and planning. It is not investment, tax or legal advice; for decisions about your own situation, talk to a qualified financial professional.

Frequently asked questions

How do you calculate profit on a call option?

At expiration, a long call is worth the stock price minus the strike, if positive. Profit = (stock price − strike − premium) × 100 × contracts. A $100 call bought for $5 is worth $15 if the stock ends at $115, for a $1,000 profit per contract before fees.

What is the break-even price of an option?

For a call, strike + premium; for a put, strike − premium. A $100 call bought for $5 breaks even at $105 at expiration.

What is the most I can lose?

Buying an option risks at most the premium paid. Selling a put can lose up to the strike minus the premium, per share. Selling a call without owning the stock has unlimited risk.

Does the calculator handle selling before expiration?

No. It shows the value at expiration only. Before expiration, an option also has time value, which depends on volatility, interest rates and time left, and needs a pricing model such as Black-Scholes.

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Results are estimates provided for information purposes. They do not replace professional advice.

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