Long call and long put profit formulas
A long call's net P&L equals the greater of expiration price minus strike or zero, less the premium per share, multiplied by contracts and 100, then less total fees. A long put uses the greater of strike minus expiration price or zero. The premium and fees define the maximum loss for both purchased options.
Long calls have unlimited theoretical upside because the underlying price has no fixed ceiling. Long puts reach their maximum theoretical value if the underlying falls to zero, so their maximum profit is capped by the strike.
Short call and short put profit formulas
A short option reverses the long option's gross payoff: premium received minus intrinsic value, multiplied by contracts and 100, then less total fees. The maximum profit is normally the net premium credit when the option expires worthless.
An uncovered short call has unlimited theoretical loss as the underlying rises. A short put has substantial but bounded expiration loss because an underlying price cannot fall below zero. This page calculates payoff risk, not the collateral or margin a broker may require.
Reading the payoff chart, table, and target return
The horizontal axis is the underlying price at expiration and the vertical axis is net position P&L. Green shading indicates profit, red shading indicates loss, and markers identify the entered current price, strike, break-even, and target when they fall inside the selected chart range.
Return on risk divides target P&L by the position's maximum theoretical loss when that loss is finite. It is not shown for an uncovered short call because no finite maximum risk exists. Use the payoff table to audit nine exact price scenarios and separate gross P&L from total fees.
What this expiration calculator does not model
The calculation intentionally excludes live stock and option quotes, remaining time value, implied volatility, Greeks, probability, bid/ask spread, slippage, early exercise, assignment, dividends, taxes, and personal suitability. Those factors can materially change an open position or an executable trade.
Verify contract specifications, live prices, liquidity, exercise style, event risk, and broker requirements independently. Options can expire worthless, and uncovered short positions can lose more than the credit received.
