How many option contracts can I buy if I only want to risk a set dollar amount on the trade?
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Fill in the fields on the left and click Calculate to see the maximum contracts you can buy within your risk budget.
How this is calculated
This tool applies to buying a long call or long put, where the most you can lose is the premium you pay. It does not apply to selling options, or to spreads, straddles, or other multi-leg positions, where maximum loss is worked out differently.
Cost per contract equals the premium per share multiplied by 100, since one standard equity option contract represents 100 shares.
Maximum contracts equals your dollar risk divided by the cost per contract, rounded down to a whole contract. You cannot buy a fraction of a contract.
If you select "Percent of account," your dollar risk is calculated as account size multiplied by that percentage.
Actual dollar risk equals the total premium paid for the contracts you buy, since that premium is the maximum you can lose on a long option held to expiration.
This does not include commissions, per-contract fees, or the difference between the bid and ask price, all of which raise your total cost above the quoted premium.
Risk & liability disclaimer: This calculator produces a mathematical estimate based on the numbers you enter. It is not financial advice and does not guarantee any trading outcome. Options trading involves risk of loss, including the loss of the entire premium paid, and past position sizing decisions do not predict future results. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. We do not guarantee this tool is error-free or suitable for your situation. Always verify results independently and consult a licensed professional before making any trading or financial decision. You could lose some or all of the capital you trade with.
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