WealthJot.ai
WealthJot.ai
📐 Options P&L Calculator
Black-Scholes options pricing with Greeks — Delta, Gamma, Theta, Vega, Rho

Options P&L: theoretical option price (b-s) is ₹236, based on the entered inputs.

Formula

Call P&L = [max(Spot Price − Strike Price, 0) − Premium Paid] × Lot Size; Put P&L = [max(Strike Price − Spot Price, 0) − Premium Paid] × Lot Size

Worked example
InputValue
Option TypeCall Option
Spot Price (S)₹22,000
Strike Price (K)₹22,100
Premium Paid (₹)₹150
Days to Expiry14 days
Implied Volatility15%
Lot Size50 shares
Theoretical Option Price (B-S)₹236
Intrinsic Value₹0
Time Value₹236
Delta (Δ) — price sensitivity0.48
Gamma (Γ) — delta change per ₹10
Theta (Θ) — time decay per day ₹₹-551
Vega (ν) — value per 1% IV change ₹₹858
Max Profit (unlimited for call)₹9,99,99,999
Max Loss (premium paid)₹-7,500
Breakeven Price₹22,250

What Black-Scholes and the Greeks tell you

This tool prices an optionThe right, not the obligation, to buy or sell at a set price. via the Black-Scholes model and reports its GreeksNumbers measuring how an option’s price reacts to each factor. — the sensitivities that describe how the price willArranging how your wealth passes on after death. move: *DeltaHow much an option moves per ₹1 move in the underlying. (per ₹1 of the underlying), GammaHow fast an option’s delta changes with price.* (how fast deltaHow much an option moves per ₹1 move in the underlying. itself changes), Theta (the value bleeding away per day), *VegaHow much an option’s price changes when volatility changes.* (per 1% change in implied volatilityThe size of price swings — not their direction.) and *RhoAn option’s sensitivity to interest-rate changes.* (rates). Traders don’t predict optionThe right, not the obligation, to buy or sell at a set price. prices; they manage these exposures.

The Greek that humbles beginners is Theta: an optionThe right, not the obligation, to buy or sell at a set price. is a melting asset. A buyer needs the underlying to move far enough, in the right direction, fast enough to outrun the daily decay — and theta accelerates in the final weeks. This is the structural reason optionThe right, not the obligation, to buy or sell at a set price. buying loses small amounts with high frequency, option selling wins small amounts with occasional violent losses, and SEBIIndia’s securities-market regulator.’s own study found ~9 in 10 retail F&OA contract whose value is derived from an underlying asset. traders lose money overall. The calculator makes the decay visible before real money teaches it.
ExampleA one-month at-the-money callThe right, not the obligation, to buy or sell at a set price. on a ₹1,000 stock (25% IVThe market’s forecast of future movement, baked into option prices.) costs ~₹29 with deltaHow much an option moves per ₹1 move in the underlying. ≈ 0.52 and theta ≈ −₹0.55/day. Hold two weeks with the stock flat and you’ve lost ~₹8 — 28% of the premium — to time alone. The stock didn’t fall; the clock just ran. Now re-run it at 40% IVThe market’s forecast of future movement, baked into option prices. and watch vegaHow much an option’s price changes when volatility changes. reprice everything: volatilityThe size of price swings — not their direction., not direction, is half the game.
Common mistakeBuying deep out-of-the-money optionsThe right, not the obligation, to buy or sell at a set price. because they’re “cheap”. Low price ≠ low cost: an OTMWhere an option’s strike sits relative to the current price. optionThe right, not the obligation, to buy or sell at a set price. is mostly hope priced in time value, with a low deltaHow much an option moves per ₹1 move in the underlying. (the move barely helps you) and total theta exposure (all of it can melt). Lottery-ticket pricing exists because lottery-ticket odds do.
✓ You learnedOptionsThe right, not the obligation, to buy or sell at a set price. are multidimensional: direction (deltaHow much an option moves per ₹1 move in the underlying./gammaHow fast an option’s delta changes with price.), time (theta) and volatilityThe size of price swings — not their direction. (vegaHow much an option’s price changes when volatility changes.) all price in simultaneously. Buyers fight decay daily; sellers harvest it against tail riskThe risk of rare, extreme events (black swans).. Run the GreeksNumbers measuring how an option’s price reacts to each factor. — especially theta per day against your expected move — before any trade, and treat F&OA contract whose value is derived from an underlying asset. as a professional’s arena: ~90% of retail participants lose.
FAQs
Why did my option lose money when the stock moved my way?

The other Greeks outvoted your delta: time decay (theta) ground away value while you waited, and/or implied volatility dropped (vega) — common right after events like earnings, when IV crush can exceed the directional gain. Small-delta OTM options are especially prone: the move helps a little, the decay and IV drop hurt a lot.

Learn the concepts
What Is an Option?Option Buyer vs Option SellerWhy the Greeks Matter