Burn-out Price Calculator

This tool helps you determine optimal parameters for option trading setups based on your market view and risk tolerance.

What is Burn-out Price: The critical price level of a naked sold option at which your trading account would be completely depleted.
Risk Management: This calculator helps protect your trading account by determining the optimal number of contracts to sell and the resulting sell trade price.
Account Protection: By calculating the burn-out price, you can ensure growth and protection of your options trading account while keeping leverage under control.

Enter your parameters below to receive recommendations on contract quantity and price levels that align with your risk management strategy.

Burn Out Price Calculator

Starting Capital 💰

$10000

$0$100000

The burn-out price is the price level at which your trading account would be depleted or "burned out" if a naked option position you've sold moves against you. This is directly related to your risk tolerance when selling options. You're exposed to potentially significant losses if the market moves strongly against your position. The burn-out price helps determine how many contracts you can safely sell based on your maximum acceptable loss (your risk tolerance)

Burn-Out Price 📉

$100

$0$1000

Choose Calculation Type

Desired Return (%)

Desired Premium

Desired Return 📊

10%

0%50%

Output Data

Enter parameters above and click "Calculate" to view option setup results.

This functionality is included in OptionsPro Excel Suite. Visit ourExcel Suite page

Want to learn more about this topic? Visit ourKnowledge Base