This Option Trading Risk Calculator will help you estimate the maximum number of contracts to stay within your defined risk
1. Simply Enter your Account Size
2. Enter the percent of risk that is acceptable for any single trade, such as 2 for 2%. (You don’t need to put the % sign.)
Then you’ll see the dollar amount of risk you’ve chosen.
3. Next enter the strike price.
The Option Trading Risk Calculator will tell you the maximum number of contracts to trade based on your defined risk tolerance.
This calculator works best for simple option trades, like naked put or calls. Note: I prefer options with spreads to hedge positions.