Options Profit Calculator
Long Call
Profit/loss for buying a call option
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Long Put
Profit/loss for buying a put option
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Covered Call
Profit/loss for a covered call strategy
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Formula
Long Call P/L = max(0, S-K) - Premium | Long Put P/L = max(0, K-S) - Premium | Each contract = 100 shares
Frequently Asked Questions
How do you calculate options profit?
For a long call: Profit = (Stock Price - Strike Price - Premium) x 100 per contract. For a long put: Profit = (Strike Price - Stock Price - Premium) x 100 per contract. Each standard contract represents 100 shares.
What is the break-even point for options?
For a call option, break-even = Strike Price + Premium Paid. For a put option, break-even = Strike Price - Premium Paid. The stock must move beyond the break-even for the option buyer to profit.
What is a covered call?
A covered call involves owning the underlying stock and selling a call option against it. It generates premium income but caps the upside if the stock rises above the strike price. It lowers the effective cost basis.
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