Evaluating the risk/reward profile of a trade is an important part of trading options, helping you optimize your strategies and make informed investment decisions.

Our investment calculator helps you estimate profits and losses for call options and put options by considering various factors, such as strike price, premium, share price and the number of contracts.

Input your details to quickly see the potential outcomes of your options trades.

How to use this calculator

Enter the following details to estimate your options profit or loss:

• Option Type. Choose between a call option or a put option, depending on your strategy.
• Strike Price. Enter the option contract’s strike price, which is the price you can buy or sell the stock.
• Premium Paid. Enter the premium, which is the price you pay for the contract.
• Share Price. Enter the stock’s projected share price at expiration.
• Number of Contracts. Enter the number of contracts you’d like to purchase.

Call options profit formula

Use the following formula to calculate the potential profit from a call option, assuming it’s in the money at expiration:

Profit = (Stock Price at Expiration – Strike Price – Premium Paid) × Number of Contracts × 100

If the stock price at expiration is below or equal to the strike price, the option expires out of the money. The profit is the negative of the premium paid because the option expires worthless.

Put options profit formula

Use the following formula to calculate the potential profit from a put option, assuming it’s in the money at expiration:

Profit = (Strike Price – Stock Price at Expiration – Premium Paid) × Number of Contracts × 100

If the stock price at expiration is above or equal to the strike price, the option expires out of the money. The profit is the negative of the premium paid since the option expires worthless.

The basics of options trading

Options trading is a strategy that gives you the flexibility to buy or sell a stock at a set price within a specific timeframe, which can be a powerful tool for both managing risk and pursuing bigger returns.

It’s different from regular stock trading because it lets you speculate on price movements or protect your investments with more precision.

You might buy a call option if you believe the price of a stock will rise above the option’s strike price before the option expires. This allows you to purchase the stock at a lower price and potentially sell it at a higher market value for a profit.

On the other hand, you might buy a put option if you believe the price of a stock will decline before the option expires. This gives you the right to sell the stock at a higher strike price, which can either protect your investment from losses or allow you to profit from the drop in the stock’s value.

If you’re looking to understand options trading, finding the right platform and exploring options trading strategies are key to getting started.

Compare options trading platforms in Canada

7 of 7 results

Finder Score	Available Asset Types	Account Types	Stock Trading Fee	Monthly Account Fee
Promoted 9.6 Excellent Questrade	9.6 Excellent	Stocks, Bonds, Options, Mutual Funds, Index Funds, ETFs, Forex, GICs, Precious Metals, IPOs	RRSP, RESP, RRIF, TFSA, Personal, Joint, FHSA, Margin	$0	$0	Go to site View details Compare product selection Compare	loading
7.9 Great CIBC Investor's Edge	7.9 Great	Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, Precious Metals, IPOs	RRSP, RESP, RRIF, TFSA, Personal, Joint, Business, FHSA, Margin	$6.95	$0 if conditions met, or $100	Get 200 free trades for 2 years, using promo code EDGE2026. Valid until September 30, 2026. T&Cs apply.	Go to site View details Compare product selection Compare	loading
8.6 Great Wealthsimple Investing	8.6 Great	Stocks, Options, ETFs, Cryptocurrency	RRSP, TFSA, Personal, Margin	$0	$0	Get a 1% match cash bonus on eligible $25,000+ transfers from other financial institutions to your Wealthsimple Self-directed Investing and Managed Investing accounts. T&Cs apply.	Go to site View details Compare product selection Compare	loading
8.2 Great BMO InvestorLine Self-Directed	8.2 Great	Stocks, Bonds, Options, Mutual Funds, ETFs, GICs	RRSP, RESP, RRIF, TFSA, Personal, Joint, FHSA, Margin	$3.95–$9.95	$0 if conditions met, otherwise $100 per year	Get up to $10,000 + 150 free trades. Offer ends August 31, 2026. T&Cs apply.	Go to site View details Compare product selection Compare	loading
9.1 Excellent Qtrade Direct Investing	9.1 Excellent	Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, IPOs	RRSP, RESP, RRIF, TFSA, Personal, Joint, FHSA, Margin	$0	$0	Earn up to $2,000 cashback when you open and fund a new Qtrade account. Valid until August 31, 2026. T&Cs apply.	Go to site View details Compare product selection Compare	loading
9.4 Excellent Interactive Brokers	9.4 Excellent	Stocks, Bonds, Options, Index Funds, ETFs, Forex, Currencies, Futures	RRSP, TFSA, Personal, Joint, Business, FHSA, Margin	Min $1.00, Max 0.5%	$0	View details Compare product selection Compare	loading
8.6 Great Moomoo	8.6 Great	Stocks, Options, ETFs	RRSP, TFSA, Personal, FHSA, Margin	$1.49/stock	$0	Get up to 30 free stocks, 6% on uninvested cash, commission-free trades for 30 days and up to $2,300 in cash rewards. Offer ends August 31, 2026. T&Cs apply.	View details Compare product selection Compare	loading

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Finder Score for stock trading platforms

To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score, the better the platform—it's that simple.

Read the full methodology

Frequently asked questions

• What is the break-even price for an option?

  The break-even price is the stock price at expiration where your option trade results in zero profit or loss (ignoring commissions). For a long call, the break-even price is the strike price plus the premium you paid. For a long put, the break-even price is the strike price minus the premium you paid.

  The stock must move beyond this point in your favor for the trade to become profitable.

• What happens if an option expires out of the money?

  It expires worthless. As the buyer, you lose only the premium you paid. No further action is required.

• Is options trading legal in Canada?

  Yes, options trading is legal in Canada. A number of Canadian investment platforms support options trading, including Questrade, Qtrade, Wealthsimple, BMO InvestorLine and CIBC Investor's Edge.

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