Short Call/Put Options Profit Calculator

A short call or short put (also known as naked call/put) strategy consists in selling either call or put options. The upside is therefore limited to the sale amount, while the downside can be very high if options are exercised deeply in the money. This strategy can therefore lead to significant losses, making it a risky strategy.

This calculator displays the payoff of your strategy at maturity depending on the underlying asset price. It also gives you tools to estimate the profit and loss (P&L) of your strategy before maturity by giving you control over price, time and volatility variables (i.e. it lets you see how your options' price varies alongside a price and/or time/volatility changes).

Step 1: select your option strategy type ('Short Call' or 'Short Put')
Step 2: enter the underlying asset price and risk free rate
Step 3: enter the maturity in days of the strategy (i.e. all options have to expire at the same date)
Step 4: enter the option price and quantity for each leg (quantity is expected to be the same for each leg)
Step 5: click "Calculate"
Step 6 (optional): you can modify the spot price, number of days before expiry or implied volatility through the controls below the chart to simulate the P&L of your strategy and see how it fares under new market conditions (note that this is theoretical though).

Spot Price Maturity (Days) Option 1 Imp. Vol.

New Option Price:

Disclaimer: the contents of this website are for informational purposes only and do not constitute any investment recommendation. The visitor acts at his own risk.