How much will I make if my put option hits my price target at expiration?

How this is calculated

• This assumes the option is held to expiration and your target price is the stock's closing price at expiration, not a price reached at some point before then.
• Intrinsic value at expiration equals the strike price minus the target price, or zero if the target is at or above the strike. This is the opposite of how a call option pays off.
• Total premium paid equals the premium per share multiplied by 100 shares per contract, multiplied by the number of contracts.
• Profit or loss equals the intrinsic value at expiration, multiplied by 100 and by the number of contracts, minus the total premium paid.
• Maximum loss on a long put is capped at the total premium paid, and happens whenever the stock finishes at or above the strike price.
• Unlike a call, a put's maximum profit is also capped. A stock can only fall to $0, so the most a put can pay out per contract is the strike price minus the premium, times 100.
• This assumes one standard equity option contract represents 100 shares and does not account for commissions, fees, taxes, or assignment mechanics.
• Before expiration, the option also carries extrinsic value, so its actual market price at any earlier date will differ from this expiration-only calculation.