Call Option Calculator

Buying a call? Enter the strike, expiry, premium and your target. The calculator shows what the call is worth when the stock reaches your target, your profit, ROI and breakeven, and whether the target is realistic.

How a call option makes money

A call gives you the right to buy 100 shares at the strike price until expiry. You profit when the stock rises enough to cover the premium you paid. Your loss is limited to that premium.

  • Breakeven at expiry: strike + premium
  • Max loss: premium × 100 × contracts
  • Max gain: unlimited in theory

Before expiry the call also holds time value, so selling early at your target often pays more than holding to expiry.

Example

Stock at $100. You buy a $105 call expiring in 45 days at implied volatility 40%. Fair value is about $3.76, so one contract costs $376. Breakeven at expiry is $108.76.

Target: $115 in 30 days. If the stock gets there and IV drops 10%, the call is worth about $10.56: a profit of about $680, or 181% ROI.

The target test says Stretch: $115 in 30 days is 1.22 standard deviations, with about a 22% chance of touching it. Worth trading only with a catalyst, like earnings, before the target date.

Choosing the strike

  • In the money calls cost more, move closer to the stock and need a smaller move to profit.
  • Out of the money calls cost less and pay more in ROI, but need a bigger move in less time.

In my own book the long leg usually sits between 0.25 and 0.50 delta: enough leverage to pay well at the target, without needing the whole move to work. Try a few strikes in the calculator and compare ROI at your target, not just the price.

For limited upside at a lower cost, compare with the bull call spread calculator.

FAQ

How do I calculate call option profit? At expiry: (stock price − strike − premium) × 100 × contracts, if positive. Before expiry, the call also has time value, which the calculator estimates with the Black Scholes model.

What is the breakeven on a call option? Strike plus the premium paid, at expiry. A $105 call bought for $3.76 breaks even at $108.76.

Can I lose more than I paid for a call? No. When you buy a call, the most you can lose is the premium.

Should I hold a call to expiry? Not always. If the stock hits your target early, the call still has time value, so selling then often captures more than waiting.

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Educational tool only. Not investment advice. Prices are Black Scholes estimates, not live quotes. See the Disclaimer.