The next-generation options profit calculator

OptionStrat predicts your options outcome using advanced models.

Stop trading in the dark and instantly find the potential profit of any options strategy.

OptionStrat has over 55 built in strategies. Try one out, free, forever:

Or, upgrade for live data and advanced features.

Why is OptionStrat the go-to choice for thousands of options traders?

OptionStratCompetitors
Live DataDelayed Data
Smooth, Modern ChartsLaggy & Dated Interface
Intra-Day PredictionsOnce-per-day Predictions
Roll & Adjust TradesNo Adjustments Possible
Integrated NewsNo News
Historical ChartsNo History
Greeks analysisNothing like it

Using the calculator to simulate a strategy

Use the build menu at the top of our website to explore the various pre-made strategies. We include short descriptions and profit/loss charts for each of them so you can discover new strategies and better understand them.

Once you have a strategy template loaded in the calculator, you can customize it with your desired strike price and expiration date. Rather than scrolling through a lengthy option chain, just click on the expiration you want and drag the strike to move it. As you drag the strike, you will see OptionStrat's calculations update in real-time, making it easy to see how adjustments affect the strategy.

To see the predicted profit and loss, use the table or chart views. The table view is selected by default and shows the expected return of the strategy on particular days (the X axis) and prices (the Y axis). The chart view is also useful, and shows the expected profit for one particular date or time. By dragging the date slider you can see how the P/L curve changes as time progresses.

Making a custom trade

Even with a variety of strategies included out of the box, we know you may want to create your own custom strategies. Using the Add menu at the top of the tool, you can add more options (or even underlying stock) to any strategy.

Using the calculator for an existing trade

Oftentimes you will have an existing trade that you want to enter into OptionStrat. This can also be done easily in OptionStrat.

To enter an existing trade, start by using the build menu to select your desired strategy as usual. If your trade is more complex than our example strategies, you can use the add button to add additional options to a base strategy.

Once you have your strategy built, click on each option to pull up an additional menu. This menu will show more details about the option and more advanced actions that you can take. For now, simply click the price of the option. The price will become editable and you can enter your entry price and press enter to confirm it. Now your strategy is using the custom entry prices rather than the current market price. The gain or loss reached so far will now be shown as unrealized profit (or loss) in the stats area.

Any option that has a custom entry price will show a blue dollar sign next to it to ensure you are aware that it isn’t using the market price. Upon saving a strategy to your account, we will automatically lock in the current price as your entry price. When you open the strategy again, you will see the profit and loss achieved since the initial save.

Using the calculator to make adjustments

Now that you have a custom strategy entered, you can make further adjustments to the trade to experiment with different scenarios. Let’s look at an example using a long call option that has made a modest profit so far.

Let’s say that SPY is at 400 and you bought a 405 call a few weeks ago for $4.00. SPY has risen since then and the call is now worth $6.00 for a 50% gain. You are bullish and want to let this call run a bit longer to try to get a bigger gain, but don’t want to risk losing money on what is already a successful trade.

By writing (selling short) another call, you are able to lock in some profits, turning this trade into a risk-free trade. Find a call for the same expiration that is worth at least as much as your initial cost ($4.00). This credit will offset your initial debit and lock in a minimum profit equal to the difference in entry prices. Selling a 408 call for example, with a price of $5.45, will lock in a minimum profit of $145. Even if SPY falls significantly, you will only lose up to $55 of your existing $200 gain. So, what is the downside of this? In exchange for reducing your risk, the potential reward of the trade has also been reduced. If SPY went to $420, you would make significant profits with a regular call. With our new adjustment, your gains are capped to the width of the strikes ($3 between 405 and 408) plus the overall credit for the trade ($1.45), for a total of $445. Most traders would consider this a good profit, and the chances of SPY increasing dramatically are slim anyways, so making adjustments like this can be a good way to reduce risk.

This can be a lot to keep track of, so we added a way to exclude any option in the trade, to see what the predicted profit would be with or without the option. If you want to go back and see the charts without the adjustment, click the new short call and then click Exclude. Then, add it back when you are ready by clicking Include.

Simulating changes in implied volatility

When estimating the future profit of an options strategy, you must consider the future underlying price and date. This is straightforward using our table or chart view. However, the third and often overlooked variable is implied volatility.

Implied volatility is one of the biggest unknowns when trading options. It represents the market's expectation for the volatility of the underlying stock. It increases when the market is anticipating a larger move, such as when a stock's earnings results are upcoming. After a large event such as earnings, IV dramatically drops (known as IV crush) and returns to a lower level that suggests the underlying price will be more stable.

Using the IV slider in OptionStrat, you can adjust IV to understand how changes in IV will affect your strategy. Strategies with positive vega (one of the option greeks) will generally increase in value as IV increases, sometimes called being "long volatility". These strategies include basic calls or puts, which will increase in value as IV increases and lose value when IV decreases. This often surprises new traders who are using calls or puts to trade around earnings, as you can be right about the direction of the stock, but still lose money due to IV crush. Note that if you build a strategy with multiple expirations, you can adjust the IV per expiration to better simulate advanced scenarios (A subscription is required for this feature however).

Viewing historical data

You may be wondering if your options idea is at a good entry point or not. By using the historical button at the top of the calculator, you can see the price history for your selected strategy as well as the underlying stock. Using these two charts together will help you understand the relationship between the underlying and your strategy. You can see if the strategy is currently expensive or cheap compared to it's historical price.

Key Points
  • OptionStrat's options profit calculator takes out the guesswork involved in trading options.
  • You can easily see how option strategies compare and what their risk and reward are.
  • OptionStrat goes beyond just predictions, including advanced features like historical data, greeks analysis, and integrated news.

More information

View our full options profit calculator tutorial for more information on how to use OptionStrat to its full potential.