Stock Options Calculator

How to Use the Stock Options Calculator

This Stock Options Calculator is designed to help you calculate various metrics related to stock options, such as the option price, total premium, break-even price, and the option Greeks. Follow the steps below to input your data and understand your option position better.

Step 1: Enter Current Stock Price

Under Current Stock Price ($), input the current price of the underlying stock. This value must be at least $0.01, and you can enter values in increments of $0.01.

Step 2: Enter Strike Price

In the Strike Price ($) field, input the strike price of the option you are evaluating. Like the stock price, the strike price must be a minimum of $0.01, with possible increments of $0.01.

Step 3: Select Option Type

Select the type of option you are evaluating in the Option Type dropdown menu. You have two choices: Call Option or Put Option. Make sure to select one option as this field is mandatory.

Step 4: Enter Expiration Date

In the Expiration Date field, choose the date when the option contract expires. The valid date range for the calculator is from January 1, 2024, to December 31, 2026. Ensure that the selected date falls within this period.

Step 5: Enter Implied Volatility

Under Implied Volatility (%), input the expected volatility percentage of the stock. The acceptable range is from 0% to 200%, and this should be entered in increments of 0.1%.

Step 6: Enter Risk-Free Interest Rate

In the Risk-Free Interest Rate (%) field, enter the current risk-free interest rate. This rate can range from 0% to 20% and must be entered in increments of 0.1%.

Step 7: Enter Number of Contracts

In the Number of Contracts field, specify the total number of option contracts you are evaluating. This must be a whole number, with a minimum value of 1.

Step 8: Review Calculation Results

After entering all required inputs, the calculator will display calculated results including:

• Time to Expiration: Displays the time in years until the option expires.
• Option Premium per Share: Displays the premium amount per share in USD.
• Total Premium: Displays the total premium amount for all contracts in USD.
• Break-Even Price: The stock price at which the option position breaks even.
• Delta, Gamma, Theta, Vega: These are the option’s Greeks that provide insights on how the option price will move with changes in market conditions.

These results help you understand the dynamics of the option’s value and how sensitive it is to various factors.