What does "long" vs. "short" mean?

Long means you bought the option and paid a premium. Short means you sold (wrote) the option and received a premium. Long buyers have limited risk; short sellers have limited gain.

How is the profit calculated?

For a long call: profit = max(0, stock price - strike) - premium, multiplied by 100 shares per contract. For a long put: profit = max(0, strike - stock price) - premium, multiplied by 100. Short positions mirror these with the sign reversed.

What is the breakeven price?

For a long call, breakeven = strike + premium. For a long put, breakeven = strike - premium. For short positions the same prices apply but represent the point where the seller starts losing money.

Does this account for early exercise or dividends?

No. This calculator uses expiration-only (European-style) payoff logic. Early exercise, dividends, and time value before expiration are not modeled here.

What is the maximum loss on a short call?

For a short (naked) call the theoretical maximum loss is unlimited, because the stock can rise indefinitely. The calculator shows this as "Unlimited" in the max loss field.

Why do contracts equal 100 shares?

Standard equity options contracts in the US control 100 shares of the underlying stock. Premiums are quoted per share, so multiply by 100 to get the dollar cost or credit per contract.

Options Profit Calculator

Name: Options Profit Calculator
Availability: InStock
Author: Nham Vu

Enter your option type, strike price, premium, contracts, and expiration price to instantly see your profit or loss.

Option Parameters

Position Type

Strike Price ($)

Premium per Share ($) (paid)

Number of Contracts

1 contract = 100 shares

Stock Price at Expiration ($)

Fill in the parameters and click Calculate P&L to see your results.

Summary

Enter your option type, strike price, premium, contracts, and expiration price to instantly see your profit or loss.

How it works

Select your position type: long call, long put, short call, or short put.
Enter the strike price of the option contract.
Enter the premium per share paid (long) or received (short).
Enter the number of contracts (1 contract = 100 shares).
Enter the stock price at expiration.
The calculator displays net P&L, breakeven, max gain, and max loss instantly.

Use cases

Evaluate potential profit before entering an options trade.
Compare long vs. short strategies for the same strike.
Determine the breakeven price needed to profit on a trade.
Estimate max risk before buying calls or puts.
Plan covered call income by modeling short call outcomes.
Quickly verify trade math after reading an options chain.

Frequently Asked Questions

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Last updated: 2026-05-23 · Reviewed by Nham Vu