Strategy guide
Long call profit calculator guide
A long call buys upside exposure with defined downside risk equal to the premium paid.
Formula focus
Example: buy one 105 call for $3.20. Breakeven at expiration is $108.20. At a $112 stock price, intrinsic value is $7.00, so estimated P/L is $380 before costs.
Practical limitations
The clean formula assumes a target price at expiration. Real fills, spreads, early assignment, exercise decisions, implied volatility, and time remaining can all change the actual outcome.
Use the calculator
Open the calculator and compare at least three target prices: bearish, base case, and bullish. If one adverse scenario is unacceptable, the trade may be too large or poorly structured.
Primary reading: OIC Profit and Loss Simulator · FINRA options overview · SEC Investor Bulletin on options · OIC options pricing overview