▸Trade is profitable at $165.00 with a 185.7% return on premium.
- Your breakeven at expiry is $158.50 per share. The stock must close above that price for the trade to be profitable.
- Your maximum loss is $350.00, which is the total premium you paid. This happens if the stock closes at or below $155.00 on expiry.
- At your target of $165.00, the trade earns $650.00, a 185.7% return on the premium paid.
- The option is $5.00 out of the money. The entire $3.50 premium is time value that decays to zero if the stock does not rise above the strike before expiry.
Next stepSwitch to Black-Scholes mode to see the theoretical fair price and Greeks, which help you judge whether the market is overpricing or underpricing this option.