Call Options Calculator

Call Options Profit/Loss Calculator

Calculation Results:

Total Premium Paid: $0.00

Intrinsic Value (per share): $0.00

Total Intrinsic Value: $0.00

Breakeven Price (per share): $0.00

Profit/Loss at Current Price (Total): $0.00

function calculateCallOption() { var currentStockPrice = parseFloat(document.getElementById('currentStockPrice').value); var strikePrice = parseFloat(document.getElementById('strikePrice').value); var optionPremium = parseFloat(document.getElementById('optionPremium').value); var numContracts = parseInt(document.getElementById('numContracts').value); if (isNaN(currentStockPrice) || isNaN(strikePrice) || isNaN(optionPremium) || isNaN(numContracts) || numContracts <= 0) { document.getElementById('totalPremiumPaid').innerText = 'Please enter valid numbers.'; document.getElementById('intrinsicValuePerShare').innerText = ''; document.getElementById('totalIntrinsicValue').innerText = ''; document.getElementById('breakevenPrice').innerText = ''; document.getElementById('profitOrLoss').innerText = ''; return; } var sharesPerContract = 100; // 1. Total Premium Paid var totalPremiumPaid = optionPremium * numContracts * sharesPerContract; // 2. Intrinsic Value (per share) var intrinsicValuePerShare = Math.max(0, currentStockPrice – strikePrice); // 3. Total Intrinsic Value var totalIntrinsicValue = intrinsicValuePerShare * numContracts * sharesPerContract; // 4. Breakeven Price (per share) var breakevenPrice = strikePrice + optionPremium; // 5. Profit/Loss at Current Price (Total) var profitOrLoss = (currentStockPrice – strikePrice – optionPremium) * numContracts * sharesPerContract; document.getElementById('totalPremiumPaid').innerText = '$' + totalPremiumPaid.toFixed(2); document.getElementById('intrinsicValuePerShare').innerText = '$' + intrinsicValuePerShare.toFixed(2); document.getElementById('totalIntrinsicValue').innerText = '$' + totalIntrinsicValue.toFixed(2); document.getElementById('breakevenPrice').innerText = '$' + breakevenPrice.toFixed(2); document.getElementById('profitOrLoss').innerText = '$' + profitOrLoss.toFixed(2); } // Run calculation on page load with default values window.onload = calculateCallOption;

Understanding Call Options and This Calculator

A call option is a financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset (like a stock) at a specified price (the strike price) on or before a certain date (the expiration date). Investors typically buy call options when they expect the price of the underlying asset to increase.

Key Terms Explained:

• Current Stock Price: This is the current market price of the stock you are considering buying an option on.
• Option Strike Price: This is the predetermined price at which the option holder can buy the underlying stock.
• Option Premium (per share): This is the price you pay for one share's worth of the option contract. Since one option contract typically represents 100 shares, your total cost for one contract will be 100 times the premium per share.
• Number of Contracts: This refers to how many option contracts you are purchasing. Each contract usually controls 100 shares of the underlying stock.

How the Calculator Works:

This calculator helps you understand the potential profit or loss of a call option position based on the current market price of the underlying stock. It provides several key metrics:

• Total Premium Paid: This is the total cost you incur to purchase the call options. It's calculated as Option Premium (per share) × Number of Contracts × 100.
• Intrinsic Value (per share): This is the immediate profit you would make per share if you exercised the option right now. It's calculated as Max(0, Current Stock Price - Option Strike Price). If the stock price is below the strike price, the intrinsic value is zero.
• Total Intrinsic Value: This is the total intrinsic value across all your contracts: Intrinsic Value (per share) × Number of Contracts × 100.
• Breakeven Price (per share): This is the stock price at which your option position would neither make a profit nor incur a loss at expiration. It's calculated as Option Strike Price + Option Premium (per share). For your call option to be profitable, the stock price must rise above this breakeven point.
• Profit/Loss at Current Price (Total): This shows your hypothetical total profit or loss if you were to exercise and sell the shares immediately at the current stock price. It's calculated as (Current Stock Price - Option Strike Price - Option Premium (per share)) × Number of Contracts × 100.

Example Scenario:

Let's say you believe XYZ stock, currently trading at $150 per share, will go up. You decide to buy 1 call option contract with a strike price of $145 and a premium of $7.50 per share.

• Current Stock Price: $150.00
• Option Strike Price: $145.00
• Option Premium (per share): $7.50
• Number of Contracts: 1

Using the calculator, you would find:

• Total Premium Paid: $7.50 * 1 * 100 = $750.00
• Intrinsic Value (per share): Max(0, $150 – $145) = $5.00
• Total Intrinsic Value: $5.00 * 1 * 100 = $500.00
• Breakeven Price (per share): $145 + $7.50 = $152.50
• Profit/Loss at Current Price (Total): ($150 – $145 – $7.50) * 1 * 100 = -$250.00

This example shows that even though the stock price ($150) is above the strike price ($145), you would still be at a loss of $250 if you exercised immediately, because the stock price has not yet surpassed your breakeven point of $152.50.

Disclaimer: Options trading involves significant risk and is not suitable for all investors. This calculator is for educational purposes only and should not be considered financial advice. Always consult with a qualified financial professional before making investment decisions.