Option Premium R2R Calculator
Work out max profit and max loss on an options trade from your entry premium, stop-loss, target, and lot size — with a live underlying price for market context.
Search a symbol above and hit "Use" to load its live strikes and expiries.
Risk : Reward Ratio
1 : 3.00
Total Position (65 qty · 1 lot)
Max Loss (at stop-loss)
₹1,950
Max Profit (at target)
₹5,850
Premium at risk (worst case if it expires worthless)
₹7,800
Risk vs Reward per Unit
Risk / unit
₹30.00
25.00% of premium
Reward / unit
₹90.00
75.00% of premium
Asymmetric setup — verify the target premium is realistic, not just wide.
Minimum Win Rate to Break Even
25.0%
At a 1:3.00 ratio, you need to win at least 25.0% of trades just to break even, before brokerage and taxes.
How Your Stop-Loss Changes the Ratio
Keeping your target premium fixed, here's how tightening or loosening your stop-loss distance changes the risk-to-reward ratio.
| Stop Distance | Stop-Loss Premium | Risk / Unit | Ratio |
|---|---|---|---|
| 50% | ₹105.00 | ₹15.00 | 1 : 6.00 |
| 75% | ₹97.50 | ₹22.50 | 1 : 4.00 |
| Current | ₹90.00 | ₹30.00 | 1 : 3.00 |
| 125% | ₹82.50 | ₹37.50 | 1 : 2.40 |
| 150% | ₹75.00 | ₹45.00 | 1 : 2.00 |
Risk-to-Reward Quality Guide
Risking more premium than you stand to gain. Needs a tighter stop or a farther target.
Workable only with a high win rate. Theta decay makes this harder for option buyers.
A solid, widely-used minimum for intraday option setups.
Lets you stay profitable even with a below-50% win rate.
Asymmetric setup — verify the target premium is realistic, not just wide.
Option Premium R2R Calculator — Plan Your Options Trade Before You Enter
The Option Premium R2R Calculator works out your total max profit and max loss on an options trade before you place it. Enter your entry premium, stop-loss premium, target premium, and lot size — buy or sell, call or put — and get your risk-to-reward ratio, breakeven win rate, and rupee-value risk and reward for the full position in one place.
Unlike stock trading, options trading adds a multiplier — the lot size — that can turn a small move in premium into a large swing in your account. This calculator keeps that math visible at every step, so the ratio you see reflects your actual position, not just the per-unit price move.
How Max Profit and Max Loss Are Calculated
For a Buy (long) position: Risk per unit = Entry Premium − Stop-Loss Premium. Reward per unit = Target Premium − Entry Premium. Both are then multiplied by your total quantity (lot size × number of lots) to get your total max loss and max profit at your planned stop and target.
For a Sell (write) position, the direction flips since you receive the premium upfront: Risk per unit = Stop-Loss Premium − Entry Premium, and Reward per unit = Entry Premium − Target Premium. As a seller, your best-case outcome is keeping the entire premium if the option expires worthless; your risk beyond the stop-loss is not capped the same way a buyer's is, since the market can gap past a stop-loss order.
Buyer vs Seller: Why the Risk Profile Is Different
- Option buyers pay the premium upfront. Their absolute worst case is losing 100% of the premium paid if the option expires worthless — loss can never exceed that, no matter how far the market moves against them.
- Option sellers (writers) receive the premium upfront. Their absolute best case is keeping the full premium if the option expires worthless — but if the trade goes against them, losses aren't capped at the stop-loss level the same way, since a sharp move can gap past a stop order before it fills.
- Because of this asymmetry, sellers generally need tighter risk controls, adequate margin, and often hedge with a further strike rather than trading naked.
Using the Live Option Chain
Search NIFTY, BANK NIFTY, SENSEX, or any listed stock and hit "Use" to load its live spot price along with the full option chain for that underlying. Pick an expiry date, then a strike — the calculator shows the last traded premium (or the bid/ask midpoint for thinly-traded strikes) for that Call or Put, which you can apply directly to the Entry Premium field with one click.
Live chains are widely available for major indices and actively-traded stocks. If a symbol doesn't have a chain available, the underlying's live spot price is still shown for context, and you can type the entry premium in manually from your broker's option chain.
How to Use This Calculator — Step by Step
Step 1 — Choose Buy (long) if you're paying premium, or Sell (write) if you're receiving premium.
Step 2 — Select Call (CE) or Put (PE) to filter the live option chain to the right side.
Step 3 — Search your underlying (e.g. NIFTY, BANK NIFTY, or a stock), then pick an expiry and strike to pull in the live premium — or enter it manually.
Step 4 — Enter your stop-loss premium and target premium — the levels where you'll exit the trade.
Step 5 — Pick a lot size preset or enter it manually, then set the number of lots you're trading.
Step 6 — Check the ratio, max profit, and max loss for the full position, and review the breakeven win rate before entering the trade.
What Counts as a Good Risk-to-Reward Ratio for Options?
- Below 1:1 — Poor. You're risking more premium than you could gain; needs a very high win rate to be profitable.
- 1:1 to 1:1.5 — Below average. Time decay (theta) works against option buyers, making this harder to sustain.
- 1:1.5 to 1:2 — Good. A common minimum threshold for intraday option buyers.
- 1:2 to 1:3 — Great. Profitable even with a below-50% win rate, which helps offset theta decay on losing trades.
- 1:3 and above — Excellent, but always sanity-check that the target premium is realistic given the time left to expiry.
Frequently Asked Questions
How is max loss calculated for buying an option?
For a buy (long) position, planned max loss = (Entry Premium − Stop-Loss Premium) × lot size × number of lots. Your absolute worst case, if you hold to expiry instead of exiting at the stop, is the full premium paid — you can never lose more than that as a buyer.
Is the risk really unlimited when selling (writing) options?
For a naked call seller, losses are theoretically uncapped since the underlying has no upper limit. For a put seller, losses are bounded by the strike price (the underlying can't fall below zero). In practice, most traders use a stop-loss to manage this, but a stop-loss order can still be gapped past in a fast-moving market, so the planned max loss shown here isn't a hard guarantee for sellers the way it is for buyers.
Does the calculator fetch live option premiums?
Yes — search an underlying, then pick an expiry and strike from the live option chain to pull in its last traded premium (or the bid/ask midpoint if it hasn't traded recently). Live chains are widely available for major indices and actively-traded stocks; if a symbol isn't supported, enter the premium manually from your broker's option chain instead.
What lot size should I use for NIFTY or BANK NIFTY?
NSE revises index lot sizes periodically to keep contract values within a target range, so the figures shown as presets can go out of date. Always confirm the current lot size for your contract on your broker's platform or the latest NSE circular before placing a trade.
How is the breakeven win rate useful for options trading?
It tells you the minimum percentage of trades you need to win, at your current risk-to-reward ratio, just to avoid losing money — before brokerage, STT, and GST. Since option buyers face theta decay working against them, comparing your actual win rate to this breakeven number is a useful reality check on a strategy.