Options Profit Calculator
Calculate the profit, loss, and break-even for your option trades.
Understanding Your Options Trade
Options trading can be complex, but understanding your potential profit and loss is fundamental. This calculator helps you analyze basic long call and long put strategies. By inputting the key details of your trade—the strike price, the premium you paid, and the expected stock price at expiration—you can instantly see the potential outcome, including your net profit or loss, your break-even point, and your return on investment.
Frequently Asked Questions (FAQ)
What is a call option?
A call option gives the holder the right, but not the obligation, to buy a stock at a specified price (the strike price) within a specific time period. A call option is profitable if the stock price at expiration is higher than the strike price plus the premium paid for the option.
What is a put option?
A put option gives the holder the right, but not the obligation, to sell a stock at a specified price (the strike price) within a specific time period. A put option is profitable if the stock price at expiration is lower than the strike price minus the premium paid for the option.
What is the break-even point in options trading?
The break-even point is the stock price at which an option strategy results in neither a profit nor a loss. For a call option, it's the strike price plus the premium. For a put option, it's the strike price minus the premium.
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