Stocks Risk Calculator

PRACTICAL APPLICATION — Options Risk Calculator (Single-Leg)

Options (Single-Leg)

The Options Risk Calculator (Single-Leg) helps you size long calls/puts or short calls/puts using your risk per trade, premium levels (entry/stop/target), and the contract multiplier (usually 100).

Computes ideal number of contracts from your risk budget.
Shows risk in dollars per contract and in total.
Estimates profit at target premium and Risk–Reward ratio.
Optional: breakeven using strike price (for debit positions).

HOW TO USE IT

Enter your total capital

For example: $5,000 or the account portion you use for options.

Set your risk per trade

Typically 0.5%–2%. This caps the maximum loss you accept for the entire position.

Select the leg type

Long Call, Long Put, Short Call, or Short Put. The calculator adapts risk and payoff accordingly.

Fill in option premiums

Enter Entry Premium, Stop Premium and Target Premium. Set Contract Multiplier (usually 100) and optional Fees. (Optional for debit: add Strike to show breakeven).

Risk/contract = |Entry − Stop| × Multiplier
Profit/contract = |Target − Entry| × Multiplier − Fees
Breakeven (debit): Call = Strike + Premium · Put = Strike − Premium

Click Calculate

You’ll get the number of contracts, total risk in USD, estimated profit at target, and the R:R ratio.

Why use this?

Size contracts precisely to your risk budget.

Understand risk/contract before entering.

Plan exits with stop/target premiums.

Stay disciplined and consistent across trades.

Calculate max $ risk, suggested shares, position cost, potential reward, and R/R using your risk %.

Account Size (USD) Risk per Trade (%) Round to Multiples (e.g. 100 = board lots) Entry Price Stop Loss Take Profit (optional) Total Commission (round-trip) (optional) Per-Share Slippage (USD) (optional) Max Share Price (Budget guard) (optional)

Max $ Risk: $0.00

Suggested Shares: 0

Per-Share Risk: $0.00

Position Cost: $0.00

Potential Reward: $0.00

R/R: 0.00

⚠️ Legal Disclaimer

This tool and all related resources are provided for educational and informational purposes only. They are not intended as financial, investment, or trading advice.

The calculations and results displayed are theoretical estimates based on general market assumptions and do not guarantee future outcomes. Real trading involves risk, including the possible loss of capital.

Before making any investment decisions, consult your financial advisor and verify your broker’s specific terms and trading conditions.

By using this tool, you acknowledge that you are solely responsible for your own trading decisions.