.option-trading-calculator-container {
font-family: 'Segoe UI', Tahoma, Geneva, Verdana, sans-serif;
max-width: 700px;
margin: 20px auto;
padding: 25px;
border: 1px solid #e0e0e0;
border-radius: 10px;
background-color: #fdfdfd;
box-shadow: 0 4px 12px rgba(0, 0, 0, 0.06);
}
.option-trading-calculator-container h2 {
text-align: center;
color: #2c3e50;
margin-bottom: 25px;
font-size: 1.8em;
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margin-bottom: 18px;
display: flex;
flex-direction: column;
}
.option-trading-calculator-container label {
margin-bottom: 8px;
color: #34495e;
font-weight: bold;
font-size: 0.95em;
}
.option-trading-calculator-container input[type="number"],
.option-trading-calculator-container select {
width: 100%;
padding: 12px;
border: 1px solid #ccc;
border-radius: 6px;
box-sizing: border-box;
font-size: 1em;
color: #333;
background-color: #fff;
transition: border-color 0.3s ease;
}
.option-trading-calculator-container input[type="number"]:focus,
.option-trading-calculator-container select:focus {
border-color: #007bff;
outline: none;
box-shadow: 0 0 0 2px rgba(0, 123, 255, 0.25);
}
.option-trading-calculator-container button {
width: 100%;
padding: 14px;
background-color: #28a745;
color: white;
border: none;
border-radius: 6px;
font-size: 1.1em;
font-weight: bold;
cursor: pointer;
transition: background-color 0.3s ease, transform 0.2s ease;
margin-top: 20px;
}
.option-trading-calculator-container button:hover {
background-color: #218838;
transform: translateY(-1px);
}
.option-trading-calculator-container .result-section {
margin-top: 30px;
padding: 20px;
background-color: #e9f7ef;
border: 1px solid #d4edda;
border-radius: 8px;
text-align: center;
}
.option-trading-calculator-container .result-section h3 {
color: #28a745;
margin-bottom: 15px;
font-size: 1.5em;
}
.option-trading-calculator-container .result-item {
margin-bottom: 10px;
font-size: 1.1em;
color: #333;
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.option-trading-calculator-container .result-item strong {
color: #2c3e50;
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.option-trading-calculator-container .error-message {
color: #dc3545;
margin-top: 15px;
text-align: center;
font-weight: bold;
}
function calculateOptionProfitLoss() {
var optionType = document.getElementById("optionType").value;
var strikePrice = parseFloat(document.getElementById("strikePrice").value);
var premiumPaid = parseFloat(document.getElementById("premiumPaid").value);
var numContracts = parseInt(document.getElementById("numContracts").value);
var underlyingPrice = parseFloat(document.getElementById("underlyingPrice").value);
var errorMessageDiv = document.getElementById("errorMessage");
var resultDiv = document.getElementById("result");
// Reset previous error and results
errorMessageDiv.style.display = "none";
resultDiv.style.display = "none";
if (isNaN(strikePrice) || isNaN(premiumPaid) || isNaN(numContracts) || isNaN(underlyingPrice) ||
strikePrice <= 0 || premiumPaid <= 0 || numContracts <= 0 || underlyingPrice strikePrice) {
profitLoss = (underlyingPrice – strikePrice) * totalShares – totalPremiumCost;
} else {
profitLoss = -totalPremiumCost; // Option expires worthless
}
breakevenPrice = strikePrice + premiumPaid;
maxProfit = "Unlimited";
maxLoss = "$" + totalPremiumCost.toFixed(2);
} else if (optionType === "put") {
// Long Put Option
if (underlyingPrice < strikePrice) {
profitLoss = (strikePrice – underlyingPrice) * totalShares – totalPremiumCost;
} else {
profitLoss = -totalPremiumCost; // Option expires worthless
}
breakevenPrice = strikePrice – premiumPaid;
maxProfit = "$" + ((strikePrice – premiumPaid) * totalShares).toFixed(2); // Max profit if stock goes to 0
maxLoss = "$" + totalPremiumCost.toFixed(2);
}
document.getElementById("totalProfitLoss").innerText = "$" + profitLoss.toFixed(2);
document.getElementById("breakevenPrice").innerText = "$" + breakevenPrice.toFixed(2);
document.getElementById("maxProfit").innerText = maxProfit;
document.getElementById("maxLoss").innerText = maxLoss;
resultDiv.style.display = "block";
}
Option Trading Profit/Loss Calculator
Call Option
Put Option
Calculation Results
Total Profit/Loss:
Breakeven Price:
Max Profit:
Max Loss:
Understanding the potential profit and loss of an option trade is crucial for any investor. Our Option Trading Profit/Loss Calculator helps you quickly assess the financial outcomes of buying a single call or put option based on various market scenarios.
What is an Option?
An option is a financial derivative that gives the buyer the right, but not the obligation, to buy or sell an underlying asset (like a stock) at a predetermined price (the strike price) on or before a specific date (the expiration date). Options are typically traded in contracts, with one contract usually representing 100 shares of the underlying stock.
Key Terms Explained:
- Option Type (Call/Put):
- Call Option: Gives the holder the right to *buy* the underlying asset at the strike price. Buyers of calls typically expect the stock price to rise.
- Put Option: Gives the holder the right to *sell* the underlying asset at the strike price. Buyers of puts typically expect the stock price to fall.
- Strike Price: The fixed price at which the option holder can buy (for a call) or sell (for a put) the underlying asset.
- Premium Paid/Received: The price paid by the option buyer to the option seller for the rights conveyed by the option contract. This is the cost of the option.
- Number of Contracts: Options are traded in contracts. One standard option contract typically controls 100 shares of the underlying stock.
- Underlying Stock Price at Expiration: The price of the stock when the option contract expires. This is a critical factor in determining whether an option is profitable.
How the Calculator Works:
This calculator focuses on the profit/loss for a single long (bought) option position at expiration. It takes into account the option type, strike price, premium paid, number of contracts, and the underlying stock's price at expiration to determine your potential financial outcome.
Calculation Logic:
- Total Premium Cost: This is simply the premium paid per share multiplied by the total number of shares controlled by your contracts (Number of Contracts * 100). This represents your maximum potential loss for a long option.
- Profit/Loss for a Call Option:
- If the Underlying Price at Expiration is above the Strike Price: Profit = (Underlying Price – Strike Price) * Total Shares – Total Premium Cost.
- If the Underlying Price at Expiration is at or below the Strike Price: Loss = -Total Premium Cost (the option expires worthless).
- Profit/Loss for a Put Option:
- If the Underlying Price at Expiration is below the Strike Price: Profit = (Strike Price – Underlying Price) * Total Shares – Total Premium Cost.
- If the Underlying Price at Expiration is at or above the Strike Price: Loss = -Total Premium Cost (the option expires worthless).
- Breakeven Price:
- For a Call Option: Strike Price + Premium Paid per Share.
- For a Put Option: Strike Price – Premium Paid per Share.
- Max Profit:
- For a Call Option: Unlimited (the stock price can theoretically rise indefinitely).
- For a Put Option: (Strike Price – 0) * Total Shares – Total Premium Cost (if the stock price drops to zero).
- Max Loss: For both Call and Put Options, the maximum loss is the Total Premium Cost paid.
Example Scenarios:
Example 1: Long Call Option
You buy 1 Call Option contract on XYZ stock with a Strike Price of $100, paying a Premium of $5.00 per share. You expect the stock to rise. At expiration, XYZ stock is trading at $110.
- Option Type: Call
- Strike Price: $100
- Premium Paid: $5.00
- Number of Contracts: 1
- Underlying Price at Expiration: $110
- Calculation:
- Total Premium Cost: $5.00 * 100 shares = $500
- Intrinsic Value: ($110 – $100) * 100 shares = $1,000
- Total Profit/Loss: $1,000 – $500 = $500 Profit
- Breakeven Price: $100 + $5.00 = $105
- Max Profit: Unlimited
- Max Loss: $500
Example 2: Long Put Option
You buy 1 Put Option contract on ABC stock with a Strike Price of $50, paying a Premium of $3.00 per share. You expect the stock to fall. At expiration, ABC stock is trading at $45.
- Option Type: Put
- Strike Price: $50
- Premium Paid: $3.00
- Number of Contracts: 1
- Underlying Price at Expiration: $45
- Calculation:
- Total Premium Cost: $3.00 * 100 shares = $300
- Intrinsic Value: ($50 – $45) * 100 shares = $500
- Total Profit/Loss: $500 – $300 = $200 Profit
- Breakeven Price: $50 – $3.00 = $47
- Max Profit: $4,700 (if stock goes to $0)
- Max Loss: $300
Use this calculator to quickly evaluate potential outcomes for your option trades and make more informed decisions.