Options
Options Profit Calculator
Calculate max profit, max loss and breakeven price(s) at expiry for long calls/puts, covered calls, cash-secured puts, vertical spreads and iron condors, with a payoff diagram.
Max profit
$300.00
- Max loss
- $200.00
- Breakeven
- 102.00
- P&L at current price
- -$200.00
P&L at expiry only — no Greeks or time value modelled. Educational estimate, not a recommendation.
Worked example
A trader buys a call at 100 for £5 and sells a call at 105 for £3 (a bull call spread), 1 contract, 100x multiplier — a £2 net debit.
- Net debit
- £5 − £3 = £2 per share
- Max profit
- (105 − 100 − 2) × 100 = £300
- Max loss
- £2 × 100 = £200
- Breakeven
- 100 + 2 = 102
The spread costs £200 to open (max loss), can make at most £300 if the stock finishes at or above 105, and breaks even at 102.
How this is calculated
Every strategy here is built from long/short call and put legs (plus stock for the covered call). Each leg's payoff at expiry is intrinsic value − premium for a long leg, or the mirror image for a short leg — the total is just the sum across legs.
Because that sum is piecewise-linear in the underlying price, max profit, max loss and breakeven(s) all fall out of the flat regions and slope changes at each strike, rather than a numeric search — so results are exact, not approximated.
This is a P&L-at-expiry model only: it does not account for time value, implied volatility changes or the Greeks before expiration.
Common mistakes
- Forgetting the contract multiplier (usually 100) when reading max profit/loss — the per-share numbers must be scaled up.
- Treating the payoff diagram as valid before expiry — with time value and the Greeks in play, today's actual P&L can differ substantially from the expiry diagram shown here.
- Mixing up which leg is bought vs sold on a spread, which flips a debit spread into a credit spread (or vice versa) and changes the whole risk profile.
Frequently asked questions
- Does this include the Greeks or time value?
- No — this is a v1 expiry-only model. It shows P&L if the position is held to expiration, not today's mark-to-market value, which depends on implied volatility, time decay and the other Greeks.
- What is the maximum loss on a covered call?
- In the worst case the stock goes to zero: max loss = (stock entry − premium received) × shares — large but bounded by the fact you already own the shares.
- What is the difference between a bull call spread and a bear call spread?
- Both use two calls at different strikes; buying the lower/selling the higher strike (paying a net debit) is bullish, while selling the lower/buying the higher strike (receiving a net credit) is bearish. The maths is the same formula either way.
- How is an iron condor's max loss calculated?
- Max loss = the wider of the two wing widths minus the net credit received, since only one side can be tested at expiry.
- What does 'cash-secured' mean for a short put?
- It means you hold enough cash to buy the shares if assigned (strike × contracts × multiplier); the P&L itself is identical to a plain short put.
- Why is my breakeven different from my broker's?
- This tool ignores commissions and assignment fees; add those to the net premium for an exact match to your broker's breakeven.
- Can I model a naked short call or put?
- Not directly as a named strategy here — a naked short call has unlimited risk and isn't included as a supported preset; use a spread or covered structure instead for a defined-risk view.