General Option Analysis
Option Profit Calculator: AAPL
Scenario analysis and payoff visualization for single-leg call and put trades.
Scenario Analysis
| Scenario Move (%) |
|---|
| Price at Expiry |
| Option Intrinsic |
| Profit / Loss |
| Return % |
* Click the percentage values to edit scenarios.
Payoff Profile At Expiration
What this calculator does
The Option Profit Calculator provides a unified workspace to analyze the four fundamental single-leg option positions: Long Calls, Long Puts, Short Calls (Naked), and Short Puts (Naked). It estimates your potential profit or loss based on the final stock price at expiration, allowing you to model different market volatility outcomes.
Traders use this tool to calculate their breakeven price, total premium cost or credit, and to conduct scenario analysis across multiple price points using our editable table.
How the strategies work
1. Long Call vs. Short Call
A **Long Call** is a bullish bet where you buy the right to own stock at the strike price. You pay premium upfront. A **Short Call** (Naked) is the opposite: you receive premium upfront and hope the stock stays below the strike price. However, if the stock rises significantly, a short call holder faces theoretically uncapped risk.
2. Long Put vs. Short Put
A **Long Put** is a bearish move where you buy the right to sell stock at the strike price. You profit as the stock falls. A **Short Put** (Naked) involves selling a put to collect premium, betting that the stock will stay above the strike. The primary risk for a short put is the stock price crashing toward zero.
Key Formulas
Short Call P/L = Premium Received - Max(0, Stock Price - Strike)
Breakeven (Calls) = Strike Price + Option Premium
Short Put P/L = Premium Received - Max(0, Strike - Stock Price)
Breakeven (Puts) = Strike Price - Option Premium
When traders use this strategy
Traders buy options (Long) when they expect high volatility or a strong directional move. Buying a call for a rally or a put for a crash allows for limited risk and high leverage.
Traders sell options (Short) to generate income when they expect low volatility or a neutral-to-directional move. A short call might be sold in a bearish environment, while a short put is often used to collect income on a bullish stock.
Risks to understand
Long Options: The biggest risk is time decay and direction. If the stock doesn't reach the breakeven price before the option expires, you will lose 100% of the premium you paid.
Short (Naked) Options: Selling options "naked" is considered high risk. If the market moves aggressively against you, your losses can be significantly larger than the initial premium you received, as seen by the downward slope on the payoff chart.
Example Interpretation
In the scenario table, look at the Profit / Loss row. If you are analyzing a Long Call, you will see losses (red) when the stock stays below the strike price. As the stock moves further into the "Scenario Move (%)", you will see the transition into green (profit) once the price exceeds the breakeven point.
Frequently Asked Questions
What is a breakeven price?
The breakeven is the stock price at which your total profit is exactly zero. It is calculated by adding the premium paid to the strike price for calls, or subtracting it for puts.
Why does a short call lose money when the stock rises?
As the "writer" of a call, you are obligated to sell shares at the strike price. If the actual stock price rises, you are losing the difference between the market price and your agreed-upon lower sale price.
Why does a long put make money when the stock falls?
A long put gives you the right to sell a stock at a high price (the strike). If the market price is lower, you can buy the stock at the cheap market rate and "sell" it at your higher strike price for a profit.
What is the 100 multiplier?
Standard equity option contracts in the U.S. represent 100 shares of the underlying stock. This calculator automatically applies this multiplier to all contract-based totals.
This calculator and educational content are for educational purposes only and do not provide financial advice.