Where do I get the worst-case loss figure for an options trade?

For a defined-risk position, it's usually the position's max loss. For undefined-risk positions like naked calls or puts, use the dedicated worst-case loss calculators for those strategies first, then bring that number here.

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What percentage of my net worth would this single trade's worst-case loss represent?

Q: What percentage of my net worth would this single trade's worst-case loss represent?

Divide the trade's worst-case dollar loss by your total net worth and multiply by 100. The result shows how much of everything you own is exposed to this one position if the worst-case outcome happens.

The market doesn't reward being right. It rewards managing being wrong, cheaply.

Jason Parker, Founder of Trading Habits

Enter Your Numbers

Use a worst-case dollar figure for this specific trade, not your normal expected loss. For undefined-risk options positions, use the naked option or naked put worst-case loss calculators first.

Your Result

Fill in the fields on the left and click Check Against My Net Worth to see the result.

How this is calculated

This divides one trade's worst-case dollar loss by your total net worth, not just your trading account balance.
The guideline tiers are a commonly cited rule of thumb, not a regulatory standard: many risk-conscious traders try to keep any single trade's worst-case loss to a small single-digit percent of net worth or less, with the right number depending on your own income, age, obligations, and risk tolerance.
For a defined-risk trade, the worst-case loss is usually your max loss on the position. For an undefined-risk position like a naked call, naked put, or short strangle, the worst-case figure can be much larger than the premium collected, calculate that separately first.
This tool does not know your actual net worth or open positions. It only does arithmetic on the two numbers you provide.

Risk & liability disclaimer: This tool only performs simple arithmetic on the numbers you enter. It is not financial, investment, or tax advice, and it does not access your broker account or verify your actual fills. Trading Habits is not a broker-dealer, registered investment adviser, or tax professional, and is not affiliated with any broker, exchange, or data provider. Always verify results independently and consult a licensed professional before making any trading or financial decision.

What percentage of my net worth would this single trade's worst-case loss represent?

Enter Your Numbers

Your Result

How this is calculated

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