Options Percentage Calculator
Options trading can lead to significant returns—or losses—due to its leveraged nature. One of the simplest yet most insightful metrics for evaluating an options trade is the percentage return, which tells you how much you’ve gained or lost relative to your original investment.
The Options Percentage Calculator helps traders quickly evaluate the percent change in value of their option based on their initial cost and the current or sell price. Whether you’re managing a portfolio or learning about trading, this tool offers quick feedback on performance.
Formula
The formula to calculate the percentage return on an option position is:
Percentage Change = ((Sell Value – Cost) / Cost) × 100
Where:
- Cost is the total amount paid to enter the option position.
- Sell Value (or Current Value) is the price at which the option is currently worth or was sold for.
A positive result means a gain, while a negative result indicates a loss.
How to Use
- Enter the Cost — This is the total amount you paid for the options (include commission if applicable).
- Enter the Value — This is either the current market value or the amount you sold the options for.
- Click “Calculate” — The calculator displays your percentage gain or loss.
This can be used for:
- Call and put options
- Long or short option positions
- ETF or stock options
Example
Scenario: You purchased a call option for $200 and sold it later for $350.
- Input Cost: 200
- Input Value: 350
- Output: Gain of 75.00%
Formula:
((350 – 200) / 200) × 100 = 75% gain
FAQs
- What is an option in trading?
An option is a financial contract that gives you the right, but not the obligation, to buy or sell a stock at a set price before expiration. - What does this calculator do?
It calculates the percentage gain or loss on your options trade. - Can I use this for both calls and puts?
Yes, it works for any type of option as long as you input the cost and final value. - What if the result is negative?
It means you’ve lost money on the trade (a loss). - Does this calculator account for commissions?
No, you should manually include those in your cost for accuracy. - What if I bought multiple contracts?
Input the total combined cost and total combined value. - How is this different from stock returns?
Options are leveraged, meaning small price changes can lead to large percentage swings. - What is a good return on an option trade?
This varies, but 30–100% gains are common in successful trades. Losses can also be 100%. - Can I use this to calculate breakeven?
Not directly. This shows percent change, not strike price-based breakeven points. - What if I sold an option instead of bought it?
You can still use this—just treat your premium as the “cost” and your buyback price as the “value.” - What if I let the option expire?
Use $0 as the value if it expired worthless. - Can this handle spreads or complex strategies?
It’s best for single-leg trades. For spreads, calculate total net cost/value. - Why does my gain exceed 100%?
Options are leveraged, so doubling or tripling your investment is possible. - Is a 200% gain possible?
Yes. For example, buying at $1.00 and selling at $3.00 yields a 200% gain. - Does this help with taxes?
No, but it helps you track performance. Taxes depend on holding period and location. - Is this useful for LEAPS options?
Yes. LEAPS (long-term equity anticipation securities) work the same way in terms of cost/value. - What about weekly options?
Also supported—just input your actual cost and sale price. - Does this predict future returns?
No, it calculates performance based on past cost/value data. - What if my input is zero or negative?
The calculator will prompt you to use valid, positive numbers. - Is this calculator free?
Yes! Use it anytime to evaluate your trades quickly.
Conclusion
Whether you’re new to options or a seasoned trader, the Options Percentage Calculator is a handy tool for evaluating the success of your trades. It simplifies the math behind options gains and losses, so you can focus on strategy and timing.