How many option contracts can I buy if I only want to risk a set dollar amount on the trade?

How this is calculated

• This tool applies to buying a long call or long put, where the most you can lose is the premium you pay. It does not apply to selling options, or to spreads, straddles, or other multi-leg positions, where maximum loss is worked out differently.
• Cost per contract equals the premium per share multiplied by 100, since one standard equity option contract represents 100 shares.
• Maximum contracts equals your dollar risk divided by the cost per contract, rounded down to a whole contract. You cannot buy a fraction of a contract.
• If you select "Percent of account," your dollar risk is calculated as account size multiplied by that percentage.
• Actual dollar risk equals the total premium paid for the contracts you buy, since that premium is the maximum you can lose on a long option held to expiration.
• This does not include commissions, per-contract fees, or the difference between the bid and ask price, all of which raise your total cost above the quoted premium.