What is the value of a call or put option?

A Call option represents the right (but not the requirement) to purchase a set number of shares of stock at a pre-determined 'strike price' before the option reaches its expiration date. A call option is purchased in hopes that the underlying stock price will rise well above the strike price, at which point you may choose to exercise the option. Exercising a call option is the financial equivalent of simultaneously purchasing the shares at the strike price and immediately selling them at the now higher market price. A Put option represents the right (but not the requirement) to sell a set number of shares of stock (which you do not yet own) at a pre-determined 'strike price' before the option reaches its expiration date. A put option is purchased in hopes that the underlying stock price will drop well below the strike price, at which point you may choose to exercise the option.

Call/Put Assumptions

Analyze a Call or Put option? ?

Call Put

Choose whether you are evaluating a call (right to buy) or a put (right to sell).

Total purchase price of option ?

The total premium you paid to buy the option contract(s).

Total number of shares controlled ?

The number of underlying shares the option gives you the right to buy or sell.

Strike price ?

The fixed price per share at which you can exercise the option.

Current price ?

The current market price of one share of the underlying stock.

Enter your values and select Calculate.

The net value figure is your bottom line: what you'd gain or lose today if you exercised the option and sold the shares, after subtracting what you originally paid. It does not include commissions, taxes, or the time value that remains if the option hasn't yet expired — so a real trade may settle at a different number than this snapshot suggests.

Two inputs drive this result more than any other: the gap between the current price and the strike price, and the total number of shares the option controls. A small move in the underlying stock can swing the gross value considerably once it's multiplied across your full share count, so it's worth testing a few nearby prices to see how sensitive your position is.

This calculator assumes you exercise and settle right now — it doesn't model how the option's value might change before expiration, or account for dividends, volatility, or the time remaining, all of which affect what an option is actually worth in the market. Treat the output as a snapshot of intrinsic value, not a forecast or a trading signal.

If you're holding a live position, it's worth rerunning this whenever the underlying price moves meaningfully or as expiration approaches, since both change the picture. Bringing the numbers to a broker or advisor before acting is a reasonable next step, especially for larger positions — but simply having a clear read on where you stand is already useful, and it's a habit worth keeping up as the trade evolves.

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.