Options Break-Even Formulas
1. Long Call Break-Even
\(\text{Break-Even}_{\text{Call}} = \text{Strike Price} + \text{Premium Paid}\)
2. Long Put Break-Even
\(\text{Break-Even}_{\text{Put}} = \text{Strike Price} - \text{Premium Paid}\)
Long Call Trade Scenario Table ($150 Strike, $4.50 Premium, 2 Contracts / 200 Shares)
| Target Stock Price | Intrinsic Value / Share | Total Payout | Total Premium Paid | Net Profit / Loss | Return on Investment (ROI) |
|---|---|---|---|---|---|
| $145.00 (Below Strike) | $0.00 | $0.00 | $900.00 | -$900.00 (Max Loss) | -100.0% |
| $154.50 (Break-Even) | $4.50 | $900.00 | $900.00 | $0.00 (Break-Even) | 0.0% |
| $165.00 (Target) | $15.00 | $3,000.00 | $900.00 | +$2,100.00 | +233.3% ROI |
| $175.00 (Bullish) | $25.00 | $5,000.00 | $900.00 | +$4,100.00 | +455.6% ROI |
How to Use This Options Profit Calculator
- Select your preferred account currency from the header picker.
- Select your option strategy type (Long Call or Long Put).
- Enter the option strike price (e.g., $150).
- Input the premium paid per share (e.g., $4.50).
- Specify contract count (e.g., 2 contracts = 200 shares).
- Input your target stock price at expiration.
- View break-even stock price, total premium outlay, net profit/loss, and ROI %.
Frequently Asked Questions
How do you calculate break-even for call and put options?
For a Call Option: Strike Price + Premium Paid. For a Put Option: Strike Price - Premium Paid.
What is the maximum risk when buying option contracts?
When buying options (Long Call or Long Put), your maximum risk is strictly limited to 100% of the premium capital paid upfront.
What does 1 option contract represent?
Standard equity option contracts control 100 shares of the underlying stock. Buying 2 contracts controls 200 shares.
How does implied volatility (IV) affect option pricing?
Higher implied volatility increases option premiums because market participants expect larger potential price swings before expiration.
What is intrinsic value vs extrinsic value (time value)?
Intrinsic value is the in-the-money amount of an option. Extrinsic value is the premium paid for remaining time until expiration and implied volatility.
What happens if an option expires out-of-the-money (OTM)?
If an option expires out-of-the-money, it expires worthless, and the option buyer loses the full premium paid.
Is my personal financial data saved on any server?
No. All calculations run locally inside your web browser. History and saved presets are stored strictly in your browser’s local storage.