Calls and puts are the two primary types of options contracts. A call option gives the buyer the right (but not the obligation) to buy an asset at a specified price (the strike price) before expiration. It’s typically used when expecting the asset’s price to rise. A put option gives the buyer the right to sell an asset at the strike price before expiration, often used when expecting the asset’s price to decline.

The strike price is the predetermined price at which an option contract allows the holder to buy (for a call) or sell (for a put) the underlying asset. The difference between the strike price and the asset's market price determines whether an option is in the money (profitable) or out of the money (not currently profitable).

The expiration date is the last day an option contract is valid. After this date, the contract either expires worthless or is exercised. Short-term options (weekly or monthly expirations) tend to be more volatile, while longer-term options (LEAPS) provide more time for a trade to play out. The closer an option gets to expiration, the more its value is affected by time decay (theta).

Bid Price – The highest price a buyer is willing to pay for an option.
Ask Price – The lowest price a seller is willing to accept for an option.
Mid Price – The midpoint between the bid and ask price, often used as a fair estimate of an option's value.
A tight bid-ask spread indicates high liquidity, while a wide spread suggests lower trading volume and potential price inefficiencies.

Our options calculator is designed to be intuitive and user-friendly, even if you’re new to options trading. It helps you quickly analyze potential trades by calculating profit and loss scenarios based on key inputs like strike price, expiration date, and implied volatility. Whether you're a beginner or an experienced trader, the tool simplifies complex calculations so you can focus on making informed decisions.

No, our calculator cannot predict future stock movements—but it can help you model different trading scenarios and risk-reward profiles. It uses historical data and mathematical models (such as Black-Scholes) to estimate how an option’s value might change under different market conditions. While no tool can guarantee profits, using our calculator helps you plan trades with better risk management and strategy alignment.