Options calculator: intrinsic value, extrinsic value and break-even
Enter the stock price, strike and premium of a call or a put and instantly see whether it is in, at or out of the money, how much of the premium is intrinsic and how much is extrinsic (time and volatility), how much it loses per day and where it breaks even.
ITM In the money · the strike is 5.00% away from the price
| Total premium | $750.00 |
| Extrinsic value lost per day until expiration | $8.33 |
| Break-even at expiration | $102.50 (+2.50 %) |
| If you buy the option | Max loss: $750.00 |
| If you sell the option | Max profit: $750.00 |
Of every $750.00 of premium, $500.00 is intrinsic value and $250.00 is what the market pays for time and volatility: about $8.33 per day over 30 days.
Inside the MTO intranet this calculator runs on live data. Type a ticker and it loads the price, expirations and the full option chain with implied volatility and Greeks, refreshing every 30 seconds, alongside other tools such as sigma ranges, options flow and SPX analytics. The MTO community runs in Spanish, with automatic English translation of posts, trade alerts and video subtitles.
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In the money, at the money and out of the money
A call is in the money (ITM) when the stock trades above the strike, and a put when it trades below. If the strike is very close to the price (within 0.5%), we treat it as at the money (ATM). Otherwise it is out of the money (OTM) and its whole premium is extrinsic value.
Intrinsic and extrinsic value
Every option premium has two parts. Intrinsic value is what it is already worth by being in the money. Extrinsic value is the rest: what you pay for the time left and for volatility. Option sellers mostly collect that extrinsic value, which decays every day, which is why the calculator shows the average daily decay.
At MTO we use this every day: for example, to decide whether rolling a short option is worth it, or whether a deep in-the-money short put is at risk of early assignment because it has almost no extrinsic value left. See our options strategies.
Break-even
The price the stock needs at expiration for the trade to break even: strike plus premium for a call, strike minus premium for a put.
Frequently asked questions
What is the intrinsic value of an option?
What the option would be worth if exercised right now. For a call it is the stock price minus the strike; for a put, the strike minus the stock price. If the result is negative, intrinsic value is zero and the option is out of the money.
What is extrinsic value?
The part of the premium that is not intrinsic value: what the market pays for the time left and for volatility. It decays as expiration approaches and is zero at expiration.
How do you calculate an option's break-even?
For a long call it is the strike plus the premium; for a long put, the strike minus the premium. It is the price the stock has to reach at expiration for the trade to neither make nor lose money.
Why multiply by 100?
Because each standard US equity option contract covers 100 shares. A $2.50 premium means $250 per contract.
Reviewed by Mario V. P.
Educational calculation tool. Results depend on the data you enter and are not financial advice or an investment recommendation. Trading options involves risk of loss.
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