Option Profit Calculator
See exactly what a call or put is worth at any underlying price — breakeven, max profit, max loss, and the full payoff curve, whether you're buying or selling.
This chart shows your total profit or loss at every possible underlying price at expiry — the classic options payoff diagram.
How option payoff actually works
What the option is "really" worth
For a call: max(0, Spot − Strike). For a put: max(0, Strike − Spot). This is the value if you exercised the option right now — never negative.
The part that decays
Premium minus intrinsic value. Reflects the probability of the option gaining more value before expiry — it shrinks to zero by expiration (theta decay).
Mirror-image risk profiles
An option buyer's max loss is the premium paid, with theoretically unlimited upside on a call. An option seller flips this: capped profit (the premium received), open-ended risk on a naked short.
Understanding option profit at expiry
An option's value at expiry comes down to one simple comparison: where the underlying's price ended up relative to the option's strike price. This calculator shows exactly that — the profit or loss of a call or put position, for both the buyer and the seller, at the moment of expiry, given the strike, the premium paid or received, and the underlying's spot price.
This is deliberately an at-expiry model. Before expiry, an option's market price also reflects time value driven by implied volatility, time remaining, and interest rates — all of which decay to zero by the time the option expires. This calculator shows you the final outcome, not the option's price on any day before that.
Calls vs puts: the two directions
Call option
- Gives the buyer the right to buy the underlying at the strike price
- Gains value as the underlying rises above the strike
- A directional bet on the underlying going up (for the buyer)
Put option
- Gives the buyer the right to sell the underlying at the strike price
- Gains value as the underlying falls below the strike
- A directional bet on the underlying going down (for the buyer)
Every option also has two sides: a buyer (who pays the premium for the right) and a seller/writer (who receives the premium and takes on the obligation). The buyer's and seller's payoffs are exact mirror images of each other.
The option payoff formula, explained
Call profit = max(Spot − Strike, 0) − Premium
Put profit = max(Strike − Spot, 0) − Premium
The max(…, 0) term is the option's intrinsic value — it can never go negative, because you simply wouldn't exercise an option that's worthless. For a seller, the payoff mirrors the buyer's exactly: the seller's profit is the premium received minus that same intrinsic value, so the seller profits when the option expires worthless or close to it.
- Breakeven, long call = Strike + Premium
- Breakeven, long put = Strike − Premium
- Max loss, buyer (either call or put) = Premium paid, always capped
- Max profit, long call = unlimited (the underlying has no upper bound)
- Max profit, long put = Strike − Premium, since the underlying can't fall below zero
Worked example: buying a call
You buy 2 lots of a call option, strike ₹150, premium ₹5 per share, lot size 100. At expiry, the underlying closes at ₹165.
| Step | Value |
|---|---|
| Intrinsic value (165 − 150) | ₹15 |
| Profit per share (15 − 5 premium) | ₹10 |
| Total quantity (2 lots × 100) | 200 |
| Total profit (10 × 200) | ₹2,000 |
| Breakeven (150 + 5) | ₹155 |
The underlying needed to close above ₹155 for this trade to be profitable at all; closing at ₹165 puts it comfortably past that, with a clean ₹2,000 profit on a ₹1,000 premium outlay.
Worked example: selling a put
You sell (write) 1 lot of a put option, strike ₹22,000, premium ₹150 per share, lot size 65. At expiry, the underlying closes at ₹22,150 — above the strike, so the put expires worthless.
| Step | Value |
|---|---|
| Intrinsic value (put, OTM) | ₹0 |
| Seller's profit per share (premium kept) | ₹150 |
| Total quantity (1 lot × 65) | 65 |
| Total profit (150 × 65) | ₹9,750 |
As a seller, you profit when the option expires worthless — the opposite of a buyer, who needs the underlying to move meaningfully in their favoured direction. Selling options is, structurally, a bet that the underlying won't move past a certain level by expiry.
Option buyer vs option seller: opposite risk profiles
Buying options
- Maximum loss is capped at the premium paid — known in advance
- Profit potential is large (calls: unlimited; puts: capped but substantial)
- Time decay (theta) works against you every day you hold
Selling (writing) options
- Maximum profit is capped at the premium received — known in advance
- Risk is large (short calls: unlimited; short puts: capped but substantial)
- Time decay works in your favour every day the option isn't exercised
Selling uncovered (naked) options, particularly naked calls, carries risk that can substantially exceed the premium received. This is fundamentally different risk-reward shape from buying options, where your downside is always known and limited in advance.
Common option payoff mistakes
- Confusing option price with intrinsic value before expiry. Before expiry, an option's market price includes time value on top of intrinsic value — this calculator's payoff model only applies precisely at expiration.
- Forgetting the breakeven includes the premium. A call buyer doesn't just need the underlying above the strike — they need it above strike plus premium to actually profit.
- Underestimating naked short risk. Treating "high probability of expiring worthless" as "low risk" ignores that the occasional large adverse move can erase many small premium collections at once.
- Ignoring brokerage, STT and other charges. This calculator shows theoretical payoff only — use the Accelpix Brokerage Calculator alongside it for the full, cost-inclusive picture, especially relevant for option sellers who transact frequently.
How to use this calculator
- Choose Call or Put, and Buy or Sell to match your position.
- Enter the strike price and the premium per share.
- Enter the spot price — either the current price for a live P&L check, or a hypothetical expiry price to test a scenario.
- Set the lot size and number of lots for your actual position.
- Read the total P&L, breakeven, and the full payoff chart across a range of possible underlying prices.
Frequently asked questions
No. This calculator shows the theoretical payoff at expiry based on the strike, premium, and spot price you enter — it does not pull live option chain data or model time value before expiry. For a live, current option's market price, check Accelpix's Pix APIs or your broker's option chain.
A call is ITM when the spot price is above the strike (it has intrinsic value), and OTM when spot is below strike (it would expire worthless). For a put, this is reversed: ITM when spot is below strike, OTM when spot is above. 'At the money' (ATM) means spot and strike are equal or very close.
Because the underlying's price has no theoretical upper bound. A naked short call loses money as the underlying rises past the strike, and since there's no ceiling on how high a stock or index can go, the seller's potential loss is, in theory, unbounded — unlike a long call buyer, whose maximum loss is always capped at the premium paid.
For a long put, breakeven = Strike − Premium. The underlying needs to fall below this price by expiry for the position to be profitable, since the put's intrinsic value (Strike − Spot) needs to exceed the premium paid for the trade to show a net profit.
Selling uncovered (naked) options carries risk that can exceed the premium received, especially on the call side. However, options are often sold as part of a hedged or covered strategy (such as a covered call, where you already own the underlying), which caps the risk very differently from a naked short position. This calculator models a single naked leg; combined strategies need to be evaluated leg by leg.
Use the current NSE-specified lot size for that index, which is revised periodically — check the Position Size Calculator's F&O lot size reference table for the latest verified figures, since lot sizes are subject to change by NSE/SEBI.