Finance Tools
What It Does
Calculates the profit and loss at expiration of a basic options strategy — single-leg (Long/Short Call, Long/Short Put) or a stock-overlay (Covered Call, Protective Put). Returns the break-even price, maximum profit, maximum loss, risk/reward ratio, the explicit P&L at any expiration price you choose, a full payoff table across a configurable price range, and an inline payoff chart. Models payoff at expiration only — no Greeks, no time decay, no implied volatility.
How to Use It
- Pick your currency and strategy.
- Enter the strike price and the premium per share. Premium is always entered as a positive number — the strategy decides whether you pay it (debit) or receive it (credit).
- For Covered Call or Protective Put, enter the underlying entry price (and optionally a stock-leg commission).
- Set the contract multiplier (default 100 for US equities) and number of contracts.
- Optionally add an option commission per contract; toggle “Charge Exit Commission” if you plan to close the position rather than letting it expire.
- Enter an expiration price for the analysis row, and optionally tighten the payoff range and step count.
- Click “Calculate” to see the summary, payoff table, and chart.
- Use “Copy Results” to copy the summary + payoff table, or “Export CSV” / “Export Excel” to save the analysis.
Options Explained
| Option | Description |
|---|---|
| Strategy | One of six common strategies. Determines payoff formula, sign of premium, and whether the underlying entry price is required |
| Strike price | The strike of the option leg. For Covered Call / Protective Put this is the strike of the option overlay (the call you sell or the put you buy) |
| Premium per share | Always positive. Strategy determines whether it is paid (debit: Long Call, Long Put, Protective Put) or received (credit: Short Call, Short Put, Covered Call) |
| Contract multiplier | Shares per option contract. US equities default 100; index options vary |
| Number of contracts | How many contracts you trade. Stock leg of Covered Call / Protective Put is auto-sized as contracts × multiplier shares |
| Option commission | Per-contract commission. Toggle “Charge Exit Commission” to include the round-trip |
| Stock-leg commission | Flat commission for the stock leg of Covered Call / Protective Put |
| Expiration price | Underlying price at which you want the explicit P&L breakdown |
| Payoff range / steps | Bounds and granularity of the payoff table and chart. Leave min/max empty for auto (strike × 0.5 / × 1.5) |
Example
Long Call at $105 strike, $2 premium, 1 contract (multiplier 100), no commission. Net debit: $200. Break-even at $107. Max loss: $200 (the premium paid). Max profit: unlimited. At an expiration price of $115, you make $800 ($115 − $107 = $8 × 100). At $107 it’s $0. At $100 it’s a −$200 loss.
Tip
At-expiration payoff diagrams are the right framework for thinking about strategy selection (long calls bet on a big move up, covered calls trade upside for income, protective puts are insurance), but real positions move differently before expiration because of time decay and volatility changes. If you plan to close before expiration, treat this tool’s results as a best-case lower bound for losses and a best-case upper bound for gains. If you plan to hold to expiration, the numbers here are exactly what you’ll see.
About Options Strategies and At-Expiration Payoffs
An option’s value at expiration is mechanical: it is exactly its intrinsic value (max(S − K, 0) for a call, max(K − S, 0) for a put), with no time value left. That makes at-expiration payoffs the cleanest way to reason about strategy choice, because every input except the underlying price collapses out of the math. Long Call is the classic asymmetric upside bet (limited downside, unlimited upside). Long Put is the protective or directional-bearish version. Short Call (naked) earns the premium but exposes you to unlimited loss if the stock rallies — most brokers tightly restrict it. Short Put (cash-secured) earns the premium with a defined max loss equal to “stock goes to zero, you keep the strike − premium”. Covered Call combines a long stock position with a short call to convert some of the stock’s upside into income. Protective Put combines a long stock position with a long put to cap downside (insurance).
Mid-life P&L for any of these can deviate substantially from the at-expiration payoff because of time decay (theta), implied volatility shifts (vega), and rate changes (rho) — but the at-expiration payoff is always the terminal anchor that every other valuation tends back toward as expiration approaches.
Disclaimer: This tool models payoff at expiration only and is for educational planning, not investment advice. Real option positions can move very differently before expiration. Consult a qualified advisor before trading options.