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.

The scenario is that on Jan 2, the price is 156. If I sell the CALL Option on Jan 2, is my profit calculation as shown below:

Profit: $156 - $155 = $1 - $15 = ($14)

Is the profit is negative 14, so for an investment of $1515, I lost $1400 and I have only $115 if I sell the CALL OPTION?

  • 1
    Your last paragraph makes no sense at all. I would suggest that you consider reading an options book so that you can obtain a sound basic understanding of option calculations. Dec 1, 2019 at 15:48
  • What book do you suggest? Currently I'm watching all the videos and blogs. Dec 4, 2019 at 4:27
  • 1
    Read "Options as a Strategic Investment" by Lawrence G McMillan. Well written with many clear examples. Will give you a fundamental understanding of basic option strategies (covered calls, short puts, spreads, etc.). It also explains a variety of other option strategies and should they intrigue you, you can read more. Pick up an old edition for peanuts. If you find that you are interested in more complex strategies, pick up the newest edition. "Option Volatility & Pricing: Advanced Trading Strategies and Techniques" by Sheldon Natenberg is good for understanding the technical aspects (Greeks) Dec 4, 2019 at 13:35

1 Answer 1


Your loss is $14.00. 100 shares per contract = $1,400 loss

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