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Selling options looks simple: collect premium, wait for decay. The real work is knowing, before you click sell, how much you can lose, where you are wrong, and how many lots your capital can handle. This free option selling calculator does that math in seconds.
An option selling calculator is a risk-planning tool for option writers. It converts premium and stop-loss levels into rupee risk, reward, breakeven and position size. It does not predict direction. It tells you whether a trade is worth taking at all.
Enter your trade details below. All results are for planning only and exclude brokerage, STT and slippage. Lot sizes change, so always confirm the current lot size on the NSE website.
If the calculator does not load in your reader, the worked example below shows the same math manually.
Risk per lot = (Stop-Loss Premium − Sold Premium) × Lot Size. Reward per lot = (Sold Premium − Target Premium) × Lot Size. Breakeven for a short put is Strike − Premium; for a short call it is Strike + Premium. Max lots = (Capital × Risk %) ÷ Risk per lot, rounded down.
| Input / Output | Value |
|---|---|
| Nifty spot (illustrative) | 25,000 |
| Sold 25,000 PE at | ₹120 |
| Stop-loss / Target premium | ₹180 / ₹40 |
| Lot size (verify on NSE) | 65 |
| Premium collected | ₹7,800 |
| Risk at stop-loss | (180 − 120) × 65 = ₹3,900 |
| Reward at target | (120 − 40) × 65 = ₹5,200 |
| Risk-reward | 1 : 1.33 |
| Breakeven at expiry | 24,880 |
| Capital ₹5,00,000, 1% risk = ₹5,000 | Max 1 lot (5,000 ÷ 3,900 = 1.28) |
Illustrative short put payoff at expiry. Figures are examples, not recommendations.
Follow the same checklist every time: entry, confirmation, stop-loss, target, risk-reward, sizing, invalidation. I like to trade options in Nifty 50, and I plan every trade on paper first using this same process.
| Step | What to decide |
|---|---|
| Entry | Sell a strike beyond a key level such as CPR, previous day high/low or a major support/resistance. |
| Confirmation | Price holds the level on a 15-minute close and premium starts falling. |
| Stop-Loss | Fix in premium terms (for example, 50% above sold premium) before entry. |
| Target | Book at 60–70% premium decay or at a time-based exit. Do not wait for zero. |
| Risk-Reward | Aim for at least 1 : 1. Below that, skip. |
| Position Sizing | Use the "Max lots" output. Never exceed it. |
| Invalidation | Spot closes beyond your level against the position. Exit even if premium stop is not hit. |
| When NOT to trade | Major event days (RBI policy, Budget, results), very high VIX spikes, or when margin is almost fully used. |
| Mistake | Practical Fix |
|---|---|
| No stop-loss because "premium will decay" | Define stop-loss premium before entry and enter it as an order. |
| Sizing by margin available | Size by risk %, not margin. Use the lots output. |
| Selling far OTM for tiny premium with big lots | Check reward vs. risk; a ₹3 premium rarely justifies tail risk. |
| Ignoring charges and slippage | Deduct brokerage, STT and exit slippage from reward before judging RR. |
| Holding through events | Reduce size or stay out on event days. |
Profit = (Premium Sold − Premium at Exit) × Lot Size × Number of Lots. Subtract brokerage, taxes and charges for net profit.
For a short put, breakeven = Strike − Premium. For a short call, breakeven = Strike + Premium. This is at expiry; before expiry, your P&L depends on current premium.
Decide your risk per trade first (commonly 1% to 2%), then divide by loss per lot at your stop-loss. In the example above, that gives 1 lot. Do not size only by margin.
It has a higher win rate but not lower risk. Sellers win small often and can lose big on a sharp move, so stop-loss discipline matters more.
No. Use your broker's margin calculator for margin and include charges separately. Verify current lot sizes and rules on the NSE website.
Explore more on our blog, read the trading books, browse all courses, or see student testimonials. To pair this calculator with a level-based entry method, learn the CPR Brahmastra Strategy course.
Disclaimer: This article is for education only and is not SEBI-registered investment advice. All figures are illustrative. Options trading involves substantial risk of loss. Consult a SEBI-registered advisor before investing.
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