How call option payoffs work
A call option gives the holder the right to buy a stock at a fixed ‘strike’ price. At expiration, the option is worth the difference between the stock’s market price and the strike price, or zero if the stock is below the strike.
How this calculator works
Enter the stock price at expiration, the strike price, the premium you paid per share, the number of contracts, and shares per contract (typically 100). The calculator computes the payoff per share as max(stock price – strike, 0), subtracts the premium to find profit per share, and multiplies by total shares controlled for your total profit or loss. It also shows the breakeven stock price (strike plus premium).
This is an educational tool illustrating option payoff mechanics at expiration only; it does not model time value, volatility, or early exercise, and is not investment advice.