ToolsOptionsOptions Contract Check
What does this contract cost me?
See the spread, the purchase cost, the most it can lose and where it breaks even.
Example contract. Change anything to check your own.
Your contract
Change any value
Add commissions
Spread cost
$20
Buying at the ask and selling straight back at the bid would leave you $20 down on 1 contract, before commissions.
- Purchase cost
- $120.00
- Most this option can lose
- $120.00
- Break even at expiration
- $151.20
That is 16.7% of the $120.00 purchase price. This assumes both trades fill at the prices shown. A quote is not a promise that your order fills there.
- Price used
- $1.20
- the ask
- Contracts
- 1
- 100 shares each
- Size at the ask
- Not known
- Size at the bid
- Not known
Using the prices you entered
Chart values as a table
| Stock price | Profit or loss |
|---|---|
| $138.00 | -$120 |
| $150.00 | -$120 |
| $151.20 | $0 |
| $158.40 | +$720 |
| $169.20 | +$1,800 |
These are profit and loss at expiration, before commissions. They do not say how likely any of them is. Sold earlier, the option can be worth more or less than these numbers.
How this tool works
How to read this
- 01
The spread cost is what a round trip would cost you right now: buy at the ask, sell straight back at the bid. It is not a fee anybody charges, it is the gap between the two sides of the market.
- 02
The purchase cost is the price times the shares one contract covers, times how many contracts. A contract is not one share.
- 03
The most it can lose is the whole purchase cost. A bought option expires worthless at worst; it cannot go on to owe more.
- 04
The break even is where the stock has to finish for the option to return what you paid. It is a level at expiration, not a forecast and not a probability.
- 05
The table shows profit and loss at expiration at several stock prices. It says nothing about how likely any of them is.
Every number here comes from what you type. A quote is not a promise that an order fills at that price.
How the calculation works
- 01Purchase cost = price times shares per contract times number of contracts, plus the opening commission when you give one.
- 02Spread cost = (ask minus bid) times shares per contract times number of contracts. It needs both sides of the market, never a typed price against a bid.
- 03Most it can lose = the purchase cost, because a bought option cannot owe more than it cost.
- 04Break even at expiration = strike plus the price for a call, strike minus the price for a put, with any opening commission spread across the shares. It is not rounded.
- 05Profit or loss at a stock price = what the option is worth there, minus what you paid. A closing commission never enters an expiration number.
Data sources and update times
- Your numbers
- The contract terms, the bid, the ask and any commissions you enter
- Instant