Long Put Option Calculator
Visualize the potential profit and loss for any long put option.
Option Parameters
Key Metrics
Enter parameters and calculate to see results.
Enter parameters and calculate to view P/L chart
Free 160-Page Options Guide
Clear visuals and real examples for every essential concept.
A long put option gives you the right, but not the obligation, to sell shares at the strike price before a predetermined expiration date. It's a bearish strategy with limited risk and substantial profit potential if the stock declines.
Key Characteristics
- Maximum Loss: Limited to the premium paid
- Maximum Profit: (Strike price - premium paid) x $100
- Breakeven: Strike price - premium paid
- Best Used When: Bearish outlook with defined risk
How to Read the P/L Chart
The white line shows your profit/loss at expiration — the final outcome if you hold the option until it expires. For puts, profits increase as the stock price falls, while losses are capped at the premium paid.
The cyan line shows your theoretical P/L at the time of entering the trade. You can see that if the stock drops immediately after entry, you can profit even if the stock price isn't beyond the expiration break-even price. The difference between the T+0 (entry) and Expiration line shows you time decay — how much you will lose from the passage of time through expiration.
Using This Calculator
- Stock Price: The current price of the stock at the time of entry
- Strike Price: The price at which you can sell shares with the put option
- Premium: The price you pay for the option (multiply by 100 * number of contracts for total cost/risk)
- Days to Expiration: Time remaining until the option expires
- Implied Volatility: Market's expectation of future stock price movements
