Common questions
Options profit calculator FAQ
Is this a live options pricing model?
No. It uses transparent expiration payoff math from manual inputs. Before expiration, actual prices may differ meaningfully.
Why does the calculator ask for a second strike?
The second strike and premium are used for vertical spreads. For single-leg strategies, those fields are ignored.
Does breakeven mean the trade is worth taking?
No. Breakeven is just one expiration level. Liquidity, probability, volatility, sizing, and exits matter too.
Can short options lose more than the premium received?
Yes. Option writers can have obligations that exceed the premium collected. Some structures define risk; others may have substantial or theoretically open-ended risk.
Primary reading: OIC Profit and Loss Simulator · FINRA options overview · SEC Investor Bulletin on options · OIC options pricing overview