Options Profit & Position Size Calculator

Try a worked example

Ticker symbol

Strategy

Bullish: you buy the call.

Stock price now ($)

Strike price ($)

Option premium ($ a share)

Contracts (100 shares each)

Target stock price ($)

Commission ($ a contract)

Premium stop (loss as a share of the premium)

The option is sold once it has lost this much of its price.

Account equity ($)

Max account risk (%)

Premium stop-loss (%)

SPY 585 long call, 2 contracts, out of the money

Break-even $589.21

+1.59% from $580.00 now; intrinsic value $0.00 a share, time value $4.20

At $596.00 at expiration

+$1,357.40

+161.1% on capital, 3.21R

A +2.76% move from $580.00

Capital required

$842.60

Max profit: unlimited

Max loss at expiration: $842.60

Risk at the 50% premium stop

$422.60

Budget $500.00 (2% of $25,000.00)

Most contracts that fit: 2 (limited by the risk budget)

Premium

$840.00

$4.20 a share × 200 shares

Round-trip commission: $2.60

Profit or loss at expiration (SPY 585 long call, 2 contracts)

Move	Stock at expiration	Net profit or loss	Return on capital
-10%	$522.00	−$842.60	−100.0%
-5%	$551.00	−$842.60	−100.0%
-2.5%	$565.50	−$842.60	−100.0%
Spot (0%)	$580.00	−$842.60	−100.0%
+2.5%	$594.50	+$1,057.40	+125.5%
+5%	$609.00	+$3,957.40	+469.7%
+10%	$638.00	+$9,757.40	+1158.0%

Time options entries with Opening Range and SMC sweeps on TradingView with the Pine Library, or open TradeLens AI.

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The math: call break-even = strike + premium · contract cost = premium × 100 × contracts

Read the full guide

How do you find an option's break-even price and size the contracts?

Every standard US equity or ETF option contract represents 100 shares of the underlying stock. When you buy a call or put at a premium of $4.20 per share, one contract costs $420.00 plus exchange and broker commission. Even if the stock moves in your direction, the option only finishes in profit at expiration if the underlying clears your break-even price (strike + premium for a call; strike − premium for a put), overcoming the extrinsic time value you paid at entry.

Active options traders rarely hold losing long options to a -100% expiration wipeout; instead, they size contracts around either a full-premium risk budget (for 0DTE or earnings lotto trades) or a -30% to -50% premium stop-loss matched to an underlying invalidation level:

Strategy	Break-even at expiration	Max loss (per contract)	Max profit (per contract)	Capital required
Long call	Strike + premium	Premium × 100	Unlimited as the stock rises	Premium × 100
Long put	Strike − premium	Premium × 100	(Strike − premium) × 100	Premium × 100
Covered call	Spot entry − premium	(Spot entry − premium) × 100	(Strike − spot + premium) × 100	Spot entry × 100
Cash-secured put	Strike − premium	(Strike − premium) × 100	Premium × 100	Strike × 100

Should you trade options contracts or shares for the same risk?

Before buying short-dated out-of-the-money calls or puts, check how much percentage move the underlying stock actually needs to reach your break-even price. If you prefer linear risk without theta decay, compare the exact share count and capital allocation in the stock position size calculator, check the required win rate for your target R-multiple in the risk reward ratio calculator, or sum the combined stop-loss exposure across all your open equity and option positions in the open position risk calculator.

Method and privacy

Method: 1 option contract = 100 shares. Long Call break-even = strike + premium + round-trip fee per share; Long Put break-even = strike − premium − round-trip fee per share; Covered Call break-even = spot − premium; Cash-Secured Put break-even = strike − premium. Does not model pre-expiration Black-Scholes implied-volatility shifts or early assignment.

Calculations run entirely in your browser — nothing you type is uploaded. Your last numbers stay in this browser so you can pick up where you left off; Forget them clears them. A link with your numbers carries them after the # sign, which browsers do not send to servers, and the page takes them out of the address before any analytics loads. Copy and download actions save your calculation locally. The site may record coarse tool actions under its privacy policy, without inputs, results, file contents or filenames.

Common questions

How do you calculate the break-even price of a call or put option?

For a Long Call, add the option premium per share (plus round-trip commission per share) to the strike price: a $585 call bought for $4.20 breaks even at $589.20 at expiration. For a Long Put, subtract the premium from the strike price: a $490 put bought for $3.80 breaks even at $486.20.

How many option contracts should I buy for a 1% or 2% account risk?

Divide your dollar risk budget (account equity × risk %) by the dollar loss per contract at your planned premium stop-loss. On a $25,000 account risking 2% ($500), a $4.20 option ($420 per contract) with a 50% premium stop ($210 loss per contract) allows 2 contracts ($420 stop risk).

What is the difference between intrinsic value and extrinsic time value?

Intrinsic value is how much the option is already in-the-money (max(0, spot − strike) for a call; max(0, strike − spot) for a put). Extrinsic value is the remaining premium above intrinsic value paid for time and implied volatility, which decays to zero at expiration.

How much capital is required for a Cash-Secured Put vs a Covered Call?

A Cash-Secured Put requires setting aside Strike Price × 100 × Contracts in cash collateral ($24,500 for one $245 put). A Covered Call requires owning 100 shares of the underlying stock per contract (Spot Price × 100 × Contracts).

Goes deeper

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