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L.2 · BEGINNER · 2 MIN

Options P&L: Calculating Profit and Breakeven

Understanding exact P&L and breakeven is essential before placing any options trade. Unlike stocks where profit is simply (sell − buy), options have premiums, strike prices, and expiration mechanics that change the math.

Quiz · 5 questions ↓

A live stock price to work the math against

AAPL — Current Price. Open AAPL on the Ledge to see current values.

Breakeven and P&L across four positions

PositionBreakevenMax ProfitMax Loss
Long CallStrike + PremiumUnlimitedPremium paid
Long PutStrike − PremiumStrike − Premium (if stock → $0)Premium paid
Short CallStrike + PremiumPremium receivedUnlimited
Short PutStrike − PremiumPremium receivedStrike − Premium

Long call P&L and breakeven calculator

Long Call P&L = (Stock Price − Strike − Premium) × 100

Price a real call and find its breakeven

Price out a real call option on a stock you’re watching. Calculate the exact stock price needed at expiration to break even. Is the implied move realistic?

What is the long put's P&L at expiration?

You buy a $200 put for $6. At expiration the stock is at $188. What’s your P&L per contract?

Check breakeven against the stock's typical move

Always calculate breakeven before entering a trade. If the stock needs to move 10% to break even and it historically moves 5% in that timeframe, the odds are against you.

What is the short put's P&L at expiry?

You sell a $100 put for $3 premium. Stock at $102 at expiry. P&L?
Check your understanding

Sit with the ideas.

You buy a call option on AAPL with a $150 strike price for $5. At expiration, AAPL trades at $162. What is your profit per share?

Why:
Continue this lesson in the appAdaptive practice · saves your progress · remediation when you miss

Other lessons in this course.

  1. 01Calls and Puts: The Building Blocks
  2. 02Options P&L: Calculating Profit and Breakeven— reading now
  3. 03Moneyness, and Reading Delta as Probability
  4. 04The Four Greeks: Delta, Theta, Gamma, and Vega
  5. 05Delta: Direction, Odds, and Share-Equivalent Exposure
  6. 06Theta in Depth: How Time Decay Actually Bleeds an Option
  7. 07Gamma in Depth: The Curvature That Moves Delta
  8. 08Vega in Depth: What You Are Really Paying for Volatility
  9. 09Implied Volatility: The Options Market's Forecast
  10. 10Covered Calls, Cash-Secured Puts, and Protective Puts
  11. 11Intrinsic vs Time Value: The Two Halves of Every Premium
  12. 12Assignment, Exercise, and the Early-Exercise Surprise
Continue this lesson in the app →See it on a real ticker →