Options Position Sizing Calculator

One of the most important questions in options trading is how many contracts should I trade? Enter your risk per trade and your max loss per contract, and find out.

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Enter Your Trade Details

Fill in the fields below, then click Calculate.

How to use this calculator

Enter your risk per trade — the dollar amount of your account you are willing to lose on this one trade (or set it as a percentage of your account)
Enter your cost basis or potential max loss for one contract — use the tabs so you can enter it the way your trade is quoted
Click Calculate to see how many contracts to trade

This result represents initial risk only. It does not account for assignment or exercise risk, gap moves through your strikes, early assignment on short options, or commissions and fees.

Your risk budget

Your Risk Per Trade ($ amount)

The most you are willing to lose on this one trade

Account Size — optional, adds the risk gauge

Lets us show this trade as a percentage of your account

Your trade

Option Price (as quoted per share)

Enter the quoted price, e.g. $2.50 — we multiply by 100 for you

Max loss per contract — Fill in the fields above, and this will update as you type.

Your Position Size

Results appear here after you click Calculate.

Enter your risk per trade and your max loss per contract to find out how many contracts to trade.

Contracts to Enter

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Total Risk

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How your risk budget fills up

Each green block is one contract.

Risk used by your contracts Budget left over

Trade breakdown

Risk per trade (budget)—

Account Size—

Max loss per contract—

Contracts to enter—

Total risk (max loss)—

Budget left over—

Credit received—

Risk as % of account—

This is your initial risk only. It excludes commissions and fees and does not account for assignment or exercise risk on short options.

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Disclaimer: This calculator is provided for educational and informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Position sizing results are estimates based on the figures you enter and represent initial risk only. They do not account for commissions, fees, slippage, assignment or exercise risk, or gap moves beyond your strikes. Options trading involves substantial risk and is not suitable for all investors. Always do your own research or consult a licensed financial advisor before making investment decisions. IncomeTrader.com is not responsible for any trading or investment decisions made based on this tool.