Option Breakeven Calculator
Compute breakeven prices at expiration for long calls, long puts, covered calls, and cash-secured puts.
How It Works
Select the option strategy, enter the strike price and the premium per share (what you paid to buy or received to sell). For covered calls, also enter the stock purchase price. Optionally set the number of contracts — each contract represents 100 shares. The calculator instantly computes the breakeven price at expiration and the maximum profit and loss.
Each strategy has a unique risk-reward profile. Long options have limited risk (premium paid) and unlimited or high upside. Covered strategies reduce your breakeven but cap your upside. The breakeven tells you the exact price the underlying must reach at expiration to avoid a loss.
FAQ
What is a long call breakeven and how is it calculated?
A long call gives you the right to buy 100 shares at the strike price. The breakeven is the strike plus the premium you paid. If the stock closes above the breakeven at expiration, you profit. Below the breakeven, you lose the premium paid.
How does a covered call limit both my risk and my upside?
A covered call caps your upside at the strike price but lowers your breakeven. If the stock rallies past your strike, you keep the premium but miss further gains. The maximum profit is reached at or above the strike price at expiration.
What's the difference between a long put and a cash-secured put breakeven?
The breakeven is the same formula (strike − premium), but the risk-reward profile differs. A long put has limited risk (premium paid) and high but capped profit. A cash-secured put has limited profit (premium received) and potentially large loss if the stock goes to zero.
What is the maximum loss for each option strategy?
For long calls and long puts, max loss is exactly the premium paid. For covered calls and cash-secured puts, max loss depends on the stock purchase price or the strike minus premium — it can be substantial if the underlying drops sharply.
How do I account for multiple contracts?
Multiply by the number of contracts: each contract represents 100 shares. For example, a long call with a $3 premium and 5 contracts has a max loss of $3 × 5 × 100 = $1,500. The calculator does this multiplication automatically.
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