Expiry profit uses intrinsic value; a market mark includes time value
An options profit calculator answers two different questions. The solid curve shows the net result if the underlying settles at each price at expiration. The dashed curve estimates what the position could be worth with time remaining. An actual mark-to-market calculation needs current option quotes. This tool's dashed curve is a model scenario, not that quote.
For each option leg, use direction +1 for a purchase and −1 for a sale. Call intrinsic value is max(S − K, 0); put intrinsic value is max(K − S, 0). Net expiry P&L = direction × (intrinsic value − entry premium) × contracts × multiplier − total leg costs. Sum the legs; for stock, replace intrinsic value with the scenario stock price.
A two-contract call, including costs
Buy two calls with a $100 strike, a $5 entry premium per unit, a 100 multiplier and $4 total costs for the leg. These are hypothetical inputs. The $1,000 premium and $4 costs are at risk if the calls expire worthless.
| Underlying at expiry | Intrinsic per unit | Net P&L |
|---|---|---|
| $90 | $0 | −$1,004 |
| $100 | $0 | −$1,004 |
| $105.02 | $5.02 | $0 |
| $110 | $10 | $996 |
At $110, the calculation is (10 − 5) × 2 × 100 − 4 = $996. The fee-adjusted breakeven is 100 + 5 + 4 / 200 = $105.02. Selling the same calls reverses the premium and intrinsic-value cash flows, but still subtracts the $4 costs. Its breakeven is $104.98 and its upside loss is unlimited.
For a separate model comparison, keep the long position but set the underlying to $100, remaining days to 365, annual IV to 20%, continuous rate to 5% and dividend yield to 0%. European Black-Scholes value is about $10.4506 per unit, so estimated P&L is about $1,086.12. The expiry curve at that same underlying price remains −$1,004. Change days to zero and both curves coincide. The assumed $5 entry fill need not match the model's current value.
Reconcile a TradingView scenario before comparing curves
- Match the underlying, currency, call or put, strike, expiration, long or short direction, and number of contracts. All legs in this calculator share one expiration; it cannot value a calendar spread at different settlement dates.
- Use entry fills for premiums. TradingView can display bid, ask, midpoint or theoretical prices, which are different price bases. Record the timestamp and basis of any imported quote. The optional lookup here imports only a matched contract when requested; it does not establish an executed trade.
- Check the multiplier against the contract specification. Standard equity options usually cover 100 shares, but an adjusted deliverable can include cash or a different share count. Changing a multiplier alone does not reproduce an OCC adjustment.
- Enter the same calendar time remaining, annual volatility, rate and dividend assumption. The model uses days / 365; it does not infer the scenario clock from an expiration label. Keep the same total cost allowance when comparing curves.
A bid/ask spread, a stale daily close, American exercise rights or an earnings-related IV change can explain a difference without a formula error. A short put's worst expiry outcome is at a zero underlying price; a chart that starts near the current price can hide most of that loss. The risk figures above check zero and every strike independently of chart sampling.
What the model leaves out
The European model assumes exercise at expiration and constant annual volatility and continuous rates for each scenario. American early exercise and assignment can change realized cash flows before that date. Discrete dividends, stock dividend receipts, margin, financing, borrow costs and taxes are excluded unless represented by your manually entered costs. These curves are scenario calculations, not historical options backtests or forecasts.
For the pricing inputs themselves, use the Black-Scholes option calculator. For contract and chart research, continue to TradingView workflows. This page is educational and does not provide investment advice.
Sources and calculation basis
Reviewed October 18, 2026. Numerical examples are reproducible calculations from the stated assumptions.
- TradingView: what-if scenarios explains separate payoff and time-dependent P&L curves.
- TradingView: options strategy builder documents quote-price choices.
- Options Industry Council: Black-Scholes formula describes theoretical pricing inputs and limits.
- OIC: options basics explains standard contract units; OIC: contract adjustments explains why adjusted deliverables require separate review.