Options Trading Tools

How much more leverage am I taking with this option compared to just buying the stock?

Enter Your Option

Enter as a positive decimal between 0 and 1, whether it's a call or a put.

Your Result

Enter the stock price, premium, and delta, then click Calculate to see your effective leverage.

How this is calculated

Risk & liability disclaimer: This calculator produces a simplified point-in-time estimate of an option's effective leverage based on the delta, stock price, and premium you enter. It does not account for gamma, theta decay, changes in implied volatility, or how the option's sensitivity changes as the stock price moves. It is not financial advice and does not predict future option performance. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Options trading involves substantial risk of loss, including the potential loss of the entire premium paid. Always verify results independently and consult a licensed professional before trading options.