Option Profit Calculator

Long Call:

• A bullish strategy that profits when the stock rises.
• Unlimited upside potential.
• Maximum loss is limited to the premium paid.

Short Call:

• A bearish strategy that collects premium but carries unlimited risk if the stock soars.
• Profit is limited to the premium received.

To use the call option calculator:

• Choose “Call” and “Buy or Sell,” then input the strike price, expiration date, premium, and chart range.
• The chart will display your breakeven point and show how high your profit can go, based on the price range entered.

Long Put:

• A bearish strategy that profits when the stock drops.
• Maximum gain = Strike Price – Premium x 100.
• Maximum loss is limited to the premium paid.

Short Put:

• A bullish income strategy with limited reward.
• Maximum loss = Strike Price – Premium x 100 (if assigned and the stock falls below the strike).

To use the put option calculator:

• Choose “Put” and “Buy or Sell,” then input the strike price, expiration date, premium, and chart range.
• The calculator will display your breakeven point, maximum loss, and potential profit based on the price range you enter.

Spreads involve buying and selling options at different strikes to limit risk and reduce costs. These strategies are ideal for directional trades with defined risk, and they’re often used in lower-volatility environments to reduce capital requirements.

• Use the calculator to model both debit spreads and credit spreads.
• Just add both legs, and it will show your net cost or credit, breakeven prices, and profit/loss zones.
• Perfect for vertical spreads such as bull call, bear call, bull put, or bear put strategies.

Call Spread Calculator:

Bull Call Spread:

• Buy a lower strike call and sell a higher strike call.
• Profits if the stock rises, with a limited upside.
• Max loss: net debit paid.
  
• Max profit: difference between strikes – net debit.

Bear Call Spread:

• Sell a lower strike call and buy a higher strike call.
• Bearish outlook with defined risk.
• Generates credit upfront; loss occurs if stock moves above breakeven.

Put Spread Calculator:

Bull Put Spread:

• Sell a higher strike put and buy a lower strike put.
• Profits if the stock stays flat or rises slightly.
• Max profit: net credit received.
  
• Max loss: strike difference – credit.

Bear Put Spread:

• Buy a higher strike put and sell a lower strike put.
• Bearish outlook with limited risk.
• Best for capturing downside movement with a controlled cost.

To use the options spread calculator:

• Select two option legs with the same expiration date — one long and one short — at different strike prices.
• Set your chart range, enter the premium for each leg, and click calculate.
• The tool will show your strategy’s breakeven point, net cost or credit, and profit/loss zones at expiration.

Straddle Calculator:

Long Straddle:

• Buy a call and a put at the same strike price and expiration date.
• A neutral but high volatility strategy — profits when the stock makes a large move in either direction.
• Unlimited upside potential if the stock rises, and large gains if it drops sharply.
• Max loss: total premium paid (if stock stays near the strike at expiration).

Short Straddle:

• Sell a call and a put at the same strike price and expiration.
• A strategy that profits when the stock stays near the strike price.
• Maximum gain is the total premium received.
• Unlimited risk to the upside and substantial downside risk if the stock moves significantly.

To use the straddle calculator:

• Select both a call and a put option at the same strike price and expiration date.
• Choose whether you are buying (long straddle) or selling (short straddle) each leg.
• Enter the premiums and set your price range to view breakevens, profit/loss zones, and risk profiles.

Strangle Calculator:

Long Strangle:

• Buy a call and a put with the same expiration date but at different strike prices.
• More affordable than a straddle, but requires a bigger price move to be profitable.
• Profits if the stock moves significantly in either direction.
• Max loss: total premium paid (if the stock stays between both strikes).

Short Strangle:

• Sell a call and a put at different strike prices with the same expiration date.
• Profits when the stock stays within the range between the strike prices.
• Maximum gain is the total premium received.
• Unlimited risk if the stock moves well above the call strike or well below the put strike.

To use the strangle calculator:

• Select a call and put with the same expiration but different strike prices.
• Choose whether to buy (long strangle) or sell (short strangle) each leg.
• Enter the premiums and set the chart price range to visualize breakevens, max loss/profit, and potential outcomes.

• A 4-leg options strategy designed for range-bound markets.
• Combines a bear call spread and a bull put spread — selling both a call and a put spread with different strikes.
• Generates income by collecting a net credit upfront.
• Max profit: total premium received if the stock stays between the inner strikes.
• Max loss: the width of either spread minus the credit received (if the stock breaks outside the range).

To use the iron condor calculator:

• Select two put legs and two call legs with the same expiration date but at different strike prices.
• Set up a short put and long put (bull put spread), and a short call and long call (bear call spread).
• Enter the premiums and your desired price range to see the breakeven points, risk/reward profile, and potential max gain/loss.

• A neutral options strategy that profits when the stock stays close to the strike price of the short options at expiration.
• Involves four option legs across three strike prices:
  • Buy 1 lower strike put
  • Sell 1 at-the-money put
  • Sell 1 at-the-money call
  • Buy 1 higher strike call
• Combines elements of a short straddle and a long strangle, with defined risk and reward.
• Max profit: when the stock closes exactly at the middle strike (the short call and short put).
• Max loss: difference between the wings (outer strikes) minus the net credit received.

To use the iron butterfly calculator:

• Select four option legs using the same expiration date: one long put, one short put, one short call, and one long call.
• Ensure the short call and short put share the same strike price (the “body”), and the long options are at different strikes (the “wings”).
• Enter the premiums, set your chart range, and the calculator will show your breakevens, max profit, max loss, and risk/reward diagram.

• A neutral, low-volatility strategy that profits when the stock stays near a target price at expiration.
• Consists of three strike prices and typically four option legs:
  • Buy 1 lower strike option
  • Sell 2 at-the-money strike options
  • Buy 1 higher strike option
• Can be constructed using either calls or puts.
• Max profit: when the stock expires exactly at the middle strike.
• Max loss: total debit paid to open the trade.

To use the butterfly calculator:

• Select four option legs: two long (outer strikes) and two short (middle strike), all with the same expiration date.
• Enter the strike prices, premiums, and set the chart range based on your target stock movement.
• The calculator will display your breakeven range, maximum gain/loss, and a full profit/loss diagram.