Options P&L Calculator

Call: stock > strike. Put: stock < strike. ITM = has intrinsic value. OTM = no intrinsic value, only time value. Exercise decision depends on whether ITM at expiry.

On long options (buyer), yes. Loss max = premium paid. On short options (seller), loss is unlimited (calls) or large (puts). Never short options without stop losses or understanding max risk.

Longer-dated options worth more. As expiration approaches, time value erodes. Buyer loses if stock doesn't move; seller benefits. For 45+ days to expiry, time decay is slow; under 7 days, rapid.