Finding the Profit/Loss for different scenarios for a call option of a XYZ stock

I have 1 contract of a CALL OPTION of a XYZ stock. The strike price is \$155. The purchase price is \$15. The Expiration is Jan 3 2020. The current price of the stock is \$161. I paid \$1515 for owning them.

I'm looking for the equations to calculate the profit/loss in the following scenarios. In each of the scenario, I would like to sell the 1 contract of the CALL OPTION and keep profit/loss.

1. On January 2nd (a day before the expiration), the stock price is \$175.
2. On January 2nd (a day before the expiration), the stock price is \$157
3. On January 2nd (a day before the expiration), the stock price is \$150
4. On December 20th, the stock price is \$150. I speculate that the stock can go low further.
5. On December 20th, the stock price is \$175. I want to take the profit.
• You’ll need to provide what you expect the option value to be for each scenario. Or are you asking what the option will be worth in each scenario? – FrankRizzo Dec 1 '19 at 3:54
• I bought 1 contract of the CALL OPTIONS and sell the same CALL OPTIONS in those scenarios and find out how much profit I can make or how much I can lose? I have heard about time decay, but don't know what kind of impact it can have in different scenarios. For example, for the scenario 1, Is the profit 175 - 155 + 15 = 5 per option or something else? – wonderful world Dec 1 '19 at 4:01
• Yes, scenario 1 would be a \$5 gain but the calc would be 175 -155 - 15 (you reversed the sign) – Bob Baerker Dec 1 '19 at 4:14

The day before expiration, the option will be trading for close to its intrinsic value (the in-the-money amount).

• At \$175 it will be \$20
• At \$157 it will be \$2 plus a modest amount of time premium
• At \$150 it will be worth zero

To determine option price on December 20th, you'll need a pricing formula. You have three choices: