Options trading requires understanding exactly how much you stand to gain or lose before entering a position. This calculator shows your P&L at various expiry prices for both calls and puts.
How Options P&L Works
When you buy an option, you pay a premium. At expiry, the option is worth its intrinsic value:
- Call option: max(0, Stock Price - Strike Price)
- Put option: max(0, Strike Price - Stock Price)
Your profit or loss is the intrinsic value minus the premium you paid, multiplied by 100 shares per contract.
Breakeven Analysis
The breakeven price is where your intrinsic value exactly equals the premium paid:
- Call breakeven = Strike + Premium
- Put breakeven = Strike - Premium
The stock needs to move beyond breakeven for the trade to profit.
Key Concepts
Max Loss is Limited
When buying options, your maximum loss is always the premium paid. This defined-risk nature makes options attractive for directional bets.
Time Decay Works Against Buyers
This calculator shows P&L at expiry. Before expiry, time value (theta) means your option may be worth less than its intrinsic value suggests. The longer you hold, the more time value erodes.
Why P&L Tracking Matters
Many options traders have no idea what their actual win rate and average return per trade are. Without this data, you cannot improve your strategy.
How JournalPlus Helps
JournalPlus tracks every options trade with full P&L analysis, including premium paid, intrinsic value at close, and net return. See which strategies and strike selections actually produce profits across your trading history.
