Free tool
See the profit or loss, breakeven, maximum gain and maximum loss for a long call, short call, long put or short put at expiration, with the 100-share multiplier applied.
Built for FINRA SIE exam prepEnter a strike, premium, expiration price and number of contracts.
Options questions are all arithmetic once you know the four breakevens. Encodr turns them into spaced-repetition practice for the SIE.
Get started freePer share, a long call gains when the stock ends above strike plus premium and loses at most the premium. A short call keeps the premium if the stock ends at or below the strike and has unlimited loss above the breakeven. A long put gains as the stock falls below strike minus premium, up to strike minus premium per share if the stock went to zero. A short put keeps the premium and loses up to strike minus premium per share.
Worked example: buy one 50 call for $3.00 and the stock is $58 at expiration. Intrinsic value is $8.00 per share, minus the $3.00 premium is $5.00, times 100 shares is a $500 profit. The breakeven is $53. The same trade seen from the writer's side is a $500 loss.
Moneyness: a call is in the money when the stock is above the strike and a put is in the money when the stock is below it. Only an in-the-money option has intrinsic value at expiration. This tool is for study, ignores commissions, fees and taxes, and is not investment advice.
Related prep: the FINRA SIE course page, SIE options basics with worked examples and the bond yield calculator.
For a call it is the strike plus the premium; for a put it is the strike minus the premium. At that stock price the intrinsic value exactly offsets the premium, so the buyer and the writer both break even.
A call writer must deliver stock at the strike, and the stock price has no ceiling. Every dollar the stock rises above the breakeven is another dollar of loss per share, so the loss has no limit.
A standard equity option contract covers 100 shares, so a premium of $3.00 per share costs $300 per contract. This calculator multiplies everything by 100 and by the number of contracts.
No. It shows the result at expiration only, before commissions, fees and taxes, and it does not model a position closed early. Educational use only.
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