Options Profit / Loss

What is Options Profit / Loss?

Options Profit/Loss calculates the theoretical gain or loss on a single-leg options position at any stock price at expiration. For long positions, maximum loss is the premium paid. For short positions, risk profiles differ: short calls have theoretically unlimited loss; short puts are limited to the strike minus the premium. This calculator plots breakeven and max profit/loss for four basic positions: long call, long put, short call, and short put. Understanding the P&L diagram for each position is the foundation of all multi-leg options strategy analysis: spreads, strangles, and iron condors are simply combinations of these building blocks.

Formula

Calculator

How to Use

1. 1
   Choose position type: Long call, long put, short call, or short put.
2. 2
   Enter strike and premium: Strike price of the option and the premium paid (long) or received (short).
3. 3
   Enter target stock price at expiry: The stock price you want to evaluate P&L at.
4. 4
   Read the result: Positive = profit, negative = loss. Multiply by 100 for a standard one-contract position.

Worked Example