Finance calculators

Options Calculator

Updated Jun 19, 2026 By Jehan Wadia
Single Option Pricing
Using: Black-Scholes-Merton Model
OTM — Out of the Money
Enter a ticker and press search to auto-fill price.
Price must be greater than 0.
Strike must be greater than 0.
Organizational label only — does not change the math.
Days must be 0 or greater.
IV must be between 0% and 500%.
Selected-type market price.
Rate must be between -10% and 30%.
Dividend yield must be 0% or greater.
Positive = LONG · Negative = SHORT.
When ON: editing IV recalculates the Premium, and editing the Premium reverse-solves the IV (Newton-Raphson). When OFF: both are independent manual inputs.
$0.00
Strike × Units per Lot × |Quantity|
$0.00
Premium × Units per Lot × |Quantity|
Results
Call Theoretical Price
$0.00
Put Theoretical Price
$0.00
Intrinsic: $0.00 Time Value: $0.00
Delta
0.0000
Change in option price per $1 move in the underlying.
Gamma
0.0000
Rate of change of Delta per $1 move in the underlying.
Theta
0.0000
Daily time decay — change per one day passing.
Typically negative for long options.
Vega
0.0000
Change in option price per 1% change in IV.
Rho i
0.0000
Change in option price per 1% change in the risk-free rate.
ScenarioImplied VolTheoretical PriceDelta
Build a Multi-Leg Strategy
Detected Strategy: —
# Type Strike Premium Quantity (+long / -short) Exp. Override Remove
Net Premium
$0.00
Max Profit
$0.00
Max Loss
$0.00
Breakeven Price(s)
Net Delta
0.0000
Net Theta
0.0000

Introduction

This free options calculator helps you find the fair price of a call or put option using proven math models. Enter a stock price, strike price, expiration date, and implied volatility, and the tool does the rest. It gives you the theoretical option price, the Greeks (like delta, gamma, theta, vega, and rho), and a clear breakdown of intrinsic and time value.

You can price both European options with the Black-Scholes-Merton model and American options with a binomial tree model. The calculator also supports dividend-paying stocks, lets you reverse-solve implied volatility from a market premium, and shows how the option price changes as the underlying moves.

Need to analyze a full strategy? Open the multi-leg builder to set up spreads, straddles, iron condors, and other combinations. It will show you the net premium, max profit, max loss, breakeven prices, and a payoff chart at expiration — all in seconds. For a quicker look at potential gains on a single trade, try our Options Profit Calculator.

Whether you are learning how options work or planning a real trade, this calculator gives you the numbers you need to make a smart decision.

How to Use Our Options Calculator

Enter details about a stock option to get its fair price, Greeks, and profit estimates. The calculator returns theoretical call and put prices, a Greeks breakdown, volatility sensitivity data, and a payoff chart.

Single Option Pricing

Option Style: Choose "European" if the option can only be used on the expiration date. Choose "American" if it can be used at any time before expiration. Most U.S. stock options are American.

Option Type: Pick "Call" if the option gives the right to buy the stock. Pick "Put" if it gives the right to sell the stock.

Underlying Symbol: Type the stock ticker, like AAPL or MSFT, then press the search button to auto-fill the current price.

Current Underlying Price: Enter the current market price of the stock in dollars. This fills in automatically if you use the symbol search. If you want to estimate gains on a stock position itself, see our Stock Profit Calculator.

Strike Price: Enter the price at which the option lets you buy or sell the stock.

Expiration Type: Select weekly, monthly, quarterly, or LEAPS to label your option. This is just a label and does not change the math.

Expiration Date: Pick the date the option expires. This auto-updates the "Days to Expiration" field.

Days to Expiration: Enter the number of days left until the option expires. This auto-updates the expiration date field.

Implied Volatility (%): Enter the expected yearly volatility of the stock as a percent. A higher number means the market expects bigger price swings. Volatility is closely related to standard deviation, which measures the spread of returns around an average.

Premium / Option Price: Enter the current market price of the option. When linked to implied volatility, changing one will update the other.

Risk-Free Rate (%): Enter the annual interest rate on a safe investment like a U.S. Treasury bond. This is used in the pricing model. You can explore how bond rates work with our Bond Yield Calculator.

Dividend Yield (%): Enter the stock's annual dividend yield as a percent. Set this to 0 if the stock does not pay dividends. A value above 0 turns on the dividend-adjusted model. Use our Dividend Yield Calculator to find the yield for any stock.

Units per Lot / Contract Size: Enter how many shares one option contract controls. In the U.S., this is usually 100.

Quantity: Enter how many contracts you are trading. Use a positive number for a long position (buying) and a negative number for a short position (selling).

Link Implied Volatility ↔ Premium: Turn this on to keep IV and premium in sync. When you change one, the calculator solves for the other. Turn it off to enter both values by hand.

Press Calculate to see results. Press Reset to return all fields to their default values. Use Switch to Advanced Mode to see all five Greeks, the volatility sensitivity table, and model details.

Multi-Leg Strategy Builder

Open the Build a Multi-Leg Strategy section to combine up to six option legs into one trade, such as a spread, straddle, or iron condor.

Underlying Symbol: Enter the stock ticker for the strategy.

Current Underlying Price: Enter the current price of the stock.

Trade Date: Pick the date you plan to enter the trade.

Expiration Date: Pick the shared expiration date for all legs, unless you override it on a specific leg.

Lot / Contract Size: Enter the number of shares per contract, usually 100.

Currency: Choose USD, EUR, or GBP to set the display currency.

Legs Table: For each leg, choose call or put, enter the strike price, the premium paid or received, and the quantity. Use a positive quantity for long and a negative quantity for short. Use the expiration override column if a leg expires on a different date.

Click Add Leg to add a new row. The calculator auto-detects common strategies like bull call spreads, strangles, and iron condors. It then shows the net premium, max profit, max loss, breakeven prices, net delta, net theta, and a payoff chart.

What Is an Options Calculator?

An options calculator helps you find the fair price of a stock option before you buy or sell it. A stock option is a contract that gives you the right to buy or sell a stock at a set price by a certain date. The set price is called the strike price, and the date is the expiration date. You pay a fee called a premium to hold this right.

There are two main types of options. A call option gives you the right to buy a stock. A put option gives you the right to sell a stock. Traders use calls when they think a stock price will go up and puts when they think it will go down. To estimate profit or loss on a specific trade, pair this tool with our Options Profit Calculator.

How This Calculator Works

This tool uses proven math models to price options. For European-style options, it uses the Black-Scholes-Merton model, which relies on the normal distribution to estimate the probability of different price outcomes. For American-style options, which can be used before the expiration date, it uses a binomial tree model. You enter the stock price, strike price, days until expiration, implied volatility, and the risk-free interest rate. The calculator then gives you a fair price for both calls and puts.

What Are the Options Greeks?

The calculator also shows values called the Greeks. These tell you how sensitive an option's price is to changes in the market. Delta shows how much the option price moves when the stock moves by $1. Gamma measures how fast Delta itself changes. Theta shows how much value the option loses each day as time passes. Vega shows how the price reacts to changes in volatility. Rho tracks the effect of interest rate changes. Understanding these sensitivities can also help when you use a Position Size Calculator to manage risk across your portfolio.

Multi-Leg Option Strategies

The strategy builder lets you combine up to six options into one trade. Common strategies include bull call spreads, bear put spreads, straddles, strangles, and iron condors. The tool detects your strategy by name, calculates your max profit, max loss, and breakeven prices, and draws a payoff chart so you can see your risk and reward at a glance. For a deeper look at when a business or trade turns profitable, our Break Even Calculator can also be helpful.

Key Terms to Know

  • Implied Volatility (IV) — A measure of how much the market expects a stock price to move. Higher IV means higher option prices.
  • Intrinsic Value — The real, built-in value of an option if you used it right now.
  • Time Value — The extra amount you pay above intrinsic value for the time left until expiration.
  • Moneyness — Describes whether an option has intrinsic value. ITM (in the money) means it does. OTM (out of the money) means it does not. ATM (at the money) means the stock price is very close to the strike price.
  • Dividend Yield — The yearly dividend a stock pays, shown as a percent. This affects option pricing because dividends lower the stock price on the payment date. You can project future dividend income with our Dividend Calculator.

Frequently asked questions

What is the difference between European and American options in this calculator?

A European option can only be used on its expiration date. An American option can be used at any time before or on that date. When you pick European, the calculator uses the Black-Scholes-Merton model. When you pick American, it uses a binomial tree model with 100 steps. Most U.S. stock options are American style.

Where do I find the implied volatility for a stock option?

You can find implied volatility (IV) on your broker's option chain. It is listed next to each option contract. You can also enter the option's market premium into this calculator, turn on the Link Implied Volatility ↔ Premium switch, and the tool will reverse-solve the IV for you.

How does the Link Implied Volatility and Premium switch work?

When the switch is on, the two fields stay in sync. If you type a new IV, the calculator updates the premium. If you type a new premium, it solves for the matching IV using a method called Newton-Raphson. When the switch is off, both fields are independent and you can type any value in either one.

Why does my calculated option price not match the market price?

The calculator gives a theoretical price based on a math model. Real market prices also depend on supply and demand, bid-ask spreads, transaction costs, and changing volatility. Small differences are normal. If the gap is large, check that your IV, dividend yield, and risk-free rate inputs are correct.

What does a negative quantity mean?

A negative quantity means you are short — you sold the option. A positive quantity means you are long — you bought the option. The calculator uses this sign to figure out your profit, loss, and net Greeks correctly.

How do I set up a bull call spread in the strategy builder?

Open the Build a Multi-Leg Strategy section. Add two call legs. For the first leg, enter a lower strike price and set quantity to +1 (long). For the second leg, enter a higher strike price and set quantity to -1 (short). Enter the premium for each. The calculator will detect it as a Bull Call Spread and show your max profit, max loss, and breakeven.

Can I use this calculator for index options or ETF options?

Yes. The math works the same for any option on a stock, ETF, or index. Just enter the correct underlying price, strike, IV, and other inputs. Note that many index options are European style, so select European for those.

What risk-free rate should I use?

Use the current yield on a U.S. Treasury bill or bond that has a maturity close to your option's expiration. For short-term options, a 1-month or 3-month Treasury rate works well. The default is 5%, but you should update it to match current rates.

Why does the symbol lookup not fill in implied volatility?

The symbol search pulls the current stock price from market data. Implied volatility is specific to each option contract and strike, so it cannot be auto-filled with a single lookup. You need to enter IV yourself or type the market premium and let the calculator solve for IV.

What does the Volatility Sensitivity table show?

This table appears in Advanced Mode. It shows how the option's theoretical price and delta change if implied volatility goes up or down by 5% or 10%. This helps you see how sensitive your option is to shifts in market volatility.

How many legs can I add to a multi-leg strategy?

You can add up to six legs. This covers most common strategies like spreads, butterflies, iron condors, and custom combinations. Each leg can have its own type, strike, premium, quantity, and optional expiration override.

What does the payoff chart show?

The payoff chart shows your profit or loss at expiration for every possible stock price. Green shading marks prices where you make money. Red shading marks prices where you lose money. Vertical lines mark the current stock price and breakeven points.

How does dividend yield affect option prices?

A higher dividend yield lowers call prices and raises put prices. This happens because dividends reduce the stock price on the payment date. If a stock does not pay dividends, leave this field at 0%.

What is the difference between intrinsic value and time value?

Intrinsic value is the profit you would get if you used the option right now. For a call, it is the stock price minus the strike (if positive). Time value is the extra amount above intrinsic value. It reflects the chance the option could become more valuable before it expires. Time value shrinks as expiration gets closer.

Can I change the contract size from 100 shares?

Yes. The Units per Lot / Contract Size field lets you change it. In the U.S., standard equity options use 100 shares per contract. Mini options or options on other markets may use different sizes. Just type the correct number.

What does the moneyness badge mean?

The badge shows whether your option is ITM (in the money), ATM (at the money), or OTM (out of the money). ITM means the option has intrinsic value right now. OTM means it does not. ATM means the stock price is very close to the strike price.

Is this calculator free to use?

Yes. This options calculator is completely free. There is no sign-up, no login, and no limit on how many times you can use it. All calculations run in your browser.

How accurate is the binomial tree model for American options?

The calculator uses 100 steps in the binomial tree, which gives results very close to the true value for most options. More steps would be slightly more precise but much slower. For practical trading decisions, 100 steps is accurate enough.