Crypto Short Call Option Profit/Loss Calculator

How to Use the Short Call Calculator

Understand your short call option's potential:

1. Strike Price ($): The price at which you are obligated to sell the crypto per coin if assigned.
2. Premium Received Per Option ($): The credit per option contract you received when selling the call.
3. Number of Contracts: How many call option contracts you sold.
4. Expected Price of Crypto at Expiry ($): The anticipated price of the underlying crypto when the option expires.
5. Calculate: See your potential P/L from the option position.

Key Metrics for a Short Call Position (Option Only):

• Max Profit: Limited to the total premium received. This occurs if the option expires out-of-the-money (crypto price at expiry ≤ strike price).
• Max Loss (Naked Call): Theoretically unlimited if the crypto price rises significantly above the strike price. For a covered call (where you own the underlying crypto), the "loss" on the option is offset by gains on the crypto, but your overall profit is capped. This calculator focuses on the option's P/L.
• Breakeven Crypto Price: The crypto price at which you neither make a profit nor a loss on the option position. Calculated as: Strike Price + Premium Received Per Coin.

Example Scenario (Naked Short Call P/L)

You sell 1 call option contract for "CryptoY" with:

• Strike Price: $100
• Premium Received per Option: $5
• Number of Contracts: 1 (assume 1 contract = 1 coin)

If CryptoY price at expiry is $90 (below strike):

• Option expires worthless.
• Total Profit from option = Premium Received = $5 (Max Profit)

If CryptoY price at expiry is $110 (above strike):

• Loss on option per coin = ($110 (Expiry Price) - $100 (Strike)) - $5 (Premium) = $5
• Total Loss from option = -$5 * 1 contract = -$5
• Breakeven Crypto Price = $100 (Strike) + $5 (Premium) = $105

When to Use Short Calls & Risks

When to Consider:

• You are neutral, mildly bearish, or expect low volatility for a crypto.
• You want to generate income from premiums (e.g., on existing holdings via covered calls).
• You are willing to sell your crypto at the strike price if it rises (for covered calls).

Key Risks:

• Naked Short Calls: Theoretically unlimited loss if the crypto price rises significantly. High risk strategy.
• Covered Calls: Limits upside potential on your crypto holdings if the price moons.
• Assignment Risk: You may be obligated to sell your crypto (if covered) or buy it on the market to deliver (if naked and assigned) before expiration.