Options Profit Calculator

Enter your trade, your target price and your target date. The calculator shows what your option is worth when the stock gets there, your profit and ROI, and one thing most options calculators skip: whether your target is realistic.

It is free, there is no sign up, and nothing you type leaves your browser.

What this options calculator shows

• Value at your target. What the option or spread is worth if the stock reaches your target price on your target date.
• Profit and ROI. Dollar profit or loss for your number of contracts, and return on the premium you paid.
• Is my target realistic? How many standard deviations your target is from today's price, based on implied volatility, with a plain verdict.
• Breakeven, max loss and max gain. The numbers to know before you place the order.
• Payoff chart and profit loss table. P&L across stock prices at your target date and at expiration, and across dates from today to expiry.

Strategies you can calculate

Each leg has its own contracts, strike, expiry and implied volatility, so ratio trades like a 2:1 diagonal work too.

How to use the options profit calculator

1. Pick a strategy. Start with a long call or long put if you are new to options.
2. Enter the option. Stock price, strike, expiration date and implied volatility. You will find implied volatility in your broker's option chain, next to each strike.
3. Add the premium you paid (optional). If you leave it blank, the calculator uses the Black Scholes fair value.
4. Set your target. The stock price you expect and the date you expect it by.
5. Read the results. Value, profit, ROI and the target test update as you type.

Example: a call option with a target

The stock trades at $100. You buy one call with a $105 strike that expires in 45 days, with implied volatility at 40%. Its fair value is about $3.76, so the trade costs $376.

You expect the stock to reach $115 in 30 days. If it does, and implied volatility drops 10% after the move, the call is worth about $10.56. That is a profit of about $680, an ROI of 181%.

Now the target test. A move to $115 in 30 days is 1.22 standard deviations for this stock. The verdict is Stretch: possible, but it needs a dated catalyst before your target date, like an earnings report. The chance of touching $115 by then is about 22%.

That second number is why the test matters. A big ROI on a target the market sees as unlikely is not a good trade by itself.

Why test the target before you trade

Most retail options traders pick a strike first and hope the stock moves. I do it the other way around. In my own long/short options book, every trade starts with a target price, a target date and a catalyst. Then I check the target against volatility:

• Up to 1.0 standard deviation: realistic.
• 1.0 to 1.5: stretch. Trade it only with a dated catalyst before the target date.
• Above 1.5: unlikely. Move the target or give the trade more time.

Only then do I choose the structure: a long option, a vertical spread or a diagonal. This calculator is a simple version of that step. The full process is in the Constellation Method, and the results it produces are on the Track Record page, losing months included.

How the options calculator works

Prices come from the Black Scholes model, the standard model for option pricing. To value your option at the target, the calculator reprices every leg at your target price, on your target date, with the time left to expiry and your implied volatility at the target.

The target test uses today's implied volatility: one standard deviation equals implied volatility times the square root of the time to your target date. The number of standard deviations is the log of target over price, divided by that.

If you want to price an option now and see its Greeks, use the Black Scholes calculator.

Limits to keep in mind

• These are model estimates, not live quotes. Real prices depend on bid and ask spreads, which can be wide on small stocks.
• Black Scholes assumes European exercise and no dividends. Most US stock options are American, so early exercise can matter near dividend dates.
• Implied volatility often drops after earnings. Use the "IV change at target" field to model that.
• Calendars and diagonals assume the short leg is not assigned early.

FAQ

What is an options profit calculator? A tool that estimates what an option or options spread will be worth at a future stock price and date, and the profit or loss on the trade. This one also tests whether your target price is realistic.

Is this options calculator free? Yes. No sign up, no email, no limits. It runs in your browser and does not send your inputs anywhere.

Where do I find implied volatility? In your broker's option chain. Most brokers show IV next to each strike. Use the IV of the strike and expiry you plan to trade.

How accurate is an options profit calculator? The math is exact for the Black Scholes model. Real results differ because of bid and ask spreads, changes in implied volatility and early exercise. Treat the output as an estimate and reprice live at your broker before you trade.

Does this calculator work for employee stock options? No. It is for listed stock options that trade on an exchange, not for startup or employee stock options.

What does "Is my target realistic?" mean? It measures how big your target move is compared with the move the options market expects, in standard deviations. Up to 1.0 is realistic, 1.0 to 1.5 is a stretch, above 1.5 is unlikely.

Can I calculate an options spread? Yes. Vertical, calendar and diagonal spreads, with calls or puts, and a different number of contracts on each leg.

Other calculators

• Black Scholes calculator
• Call option calculator
• Put option calculator
• Bull call spread calculator
• Bear put spread calculator
• Calendar spread calculator
• Diagonal spread calculator

See all of them on the free tools page.

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