Option Profit Calculator
This calculator models profit, loss and key metrics for common option strategies including single-leg (long call, long put) and multi-leg (vertical spreads, iron condor, custom). Inputs are per-share option premiums and strikes; contract size is applied to convert to USD values.
Results show net premium, breakeven, maximum theoretical loss and profit at a user-selected target underlying price. Use the transaction cost and contract size fields to reflect real trading costs and standard option contract specifications.
Governance
Record b1a14ebe5b79 • Reviewed by Fidamen Standards Committee
Buy a single call option. Outputs include total premium paid, breakeven, max loss, intrinsic value and profit at a target underlying price.
Inputs
Advanced inputs
Long call inputs
Long put inputs
Call vertical spread inputs
Iron condor inputs
Custom multi-leg inputs
Results
Total premium paid (USD)
$251.00
Breakeven (USD)
$102.50
Max loss (USD)
$251.00
Intrinsic value at target (USD)
$1,000.00
Profit at target (USD)
$749.00
| Output | Value | Unit |
|---|---|---|
| Total premium paid (USD) | $251.00 | USD |
| Breakeven (USD) | $102.50 | USD |
| Max loss (USD) | $251.00 | USD |
| Intrinsic value at target (USD) | $1,000.00 | USD |
| Profit at target (USD) | $749.00 | USD |
Visualization
Methodology
Calculations use deterministic algebraic formulas applied to user inputs. We compute per-share intrinsic values and scale by number of contracts and contract size to report USD figures.
This tool is for scenario analysis and does not execute trades. It does not perform live mark-to-market or margin calculations beyond simple theoretical maxima and target-price payoffs.
Accuracy practices: inputs are treated as exact numeric values. For production use, round-trip testing and numerical validation should follow quality management guidelines such as ISO 9001 and algorithmic development controls recommended in IEEE software engineering standards. For security and data handling, follow NIST cybersecurity guidance.
Worked examples
Example: Buy 1 call at 2.50 premium with 100 contract size, strike 100. Premium total = 2.50 * 1 * 100 = $250. Breakeven = 102.50.
Example: Bull call spread long 95 (6.00) short 105 (2.00) with 1 contract: net premium = (6.00 - 2.00) * 100 = $400 gross. Max profit = (105 - 95) * 100 - 400 = $600.
F.A.Q.
Does this calculator account for assignment and margin?
No. This tool provides theoretical P&L and does not simulate exercise/assignment flows or broker margin rules. Consult your broker for margin and assignment mechanics.
Are Greeks or time decay included?
Not directly. Implied volatility and days to expiration are available as inputs for advanced modeling, but Greeks (delta/theta/vega) are not computed by default in this version. Use dedicated Greeks models for sensitivity analysis.
How accurate are the payoff numbers?
Payoffs are exact algebraic calculations based on inputs. Real-world execution, slippage, fills, early exercise, dividends, and borrow/interest costs can alter outcomes. See the accuracy and limits section below for standards and calibration notes.
Sources & citations
- NIST — Cybersecurity & best practices — https://www.nist.gov
- ISO — Quality management standards — https://www.iso.org
- IEEE — Software engineering and algorithm development guidance — https://www.ieee.org
- OSHA — Workplace safety and operational controls (for operational risk programs) — https://www.osha.gov
- OCC — Options Clearing Corporation — https://www.theocc.com/
- CBOE — Options Education — https://www.cboe.com/education/
Further resources
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
Record ID: b1a14ebe5b79What changed (latest)
v1.0.0 • 2025-11-24 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Versioning & Change Control
Audit record (versions, QA runs, reviewer sign-off, and evidence).
What changed (latest)
v1.0.0 • 2025-11-24 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Public QA status
PASS — golden 25 + edge 120
Last run: 2026-01-23 • Run: golden-edge-2026-01-23
Engine
v1.0.0
Data
Baseline (no external datasets)
Content
v1.0.0
UI
v1.0.0
Governance
Last updated: Nov 24, 2025
Reviewed by: Fidamen Standards Committee (Review board)
Credentials: Internal QA
Risk level: low
Reviewer profile (entity)
Fidamen Standards Committee
Review board
Internal QA
Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person
Semantic versioning
- MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
- MINOR: New features or fields that do not change existing outputs for the same inputs.
- PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.
Review protocol
- Verify formulas and unit definitions against primary standards or datasets.
- Run golden-case regression suite and edge-case suite.
- Record reviewer sign-off with credentials and scope.
- Document assumptions, limitations, and jurisdiction applicability.
Assumptions & limitations
- Uses exact unit definitions from the Fidamen conversion library.
- Internal calculations use double precision; display rounding follows the unit's configured decimal places.
- Not a substitute for calibrated instruments in regulated contexts.
- Jurisdiction-specific rules may require official guidance.
Change log
v1.0.0 • 2025-11-24 • MINOR
Initial publication and governance baseline.
Why: Published with reviewed formulas, unit definitions, and UX controls.
Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 3f612a7d9085