Options profit and loss depends on the type of position you hold and the relationship between the stock price at expiration and your strike price. Each standard options contract represents 100 shares of the underlying stock, so the per-share profit or loss is multiplied by 100 and then by the number of contracts to determine your total P&L.

For a Long Call, the formula is: P&L = (max(0, Stock Price - Strike) - Premium) × 100 × Contracts. You profit when the stock price exceeds the strike plus the premium paid. For a Long Put, the formula is: P&L = (max(0, Strike - Stock Price) - Premium) × 100 × Contracts. You profit when the stock drops below the strike minus the premium.

Short options work in reverse: you collect the premium upfront and profit when the option expires worthless. A Short Call has unlimited risk if the stock rises significantly, while a Short Put has risk limited to the strike price minus the premium. The break-even price for calls is the strike plus premium; for puts, it is the strike minus premium.