How to Use the Probability of Profit Calculator

1. Choose the strategy: short put, covered call or long option. 2. Enter the stock price, strike, premium, days to expiration and implied volatility. 3. Read the probability of profit, which accounts for the premium through the break-even price.

Higher probability usually means a smaller premium. Use the distribution chart to see how likely large moves are, and size positions for the outcomes the probability does not cover.

Results are educational estimates from standard formulas, not investment advice. Live prices, fees and your broker's rules can change the outcome.