Options Glossary

Glossary: Probability of Profit [POP]

Last Updated: May 1, 2018

Glossary

Probability of Profit [POP]

What Does Probability of Profit [POP] Mean in Options Trading?

The Probability of Profit (POP) refers to the chance the stock price will go to a level at expiration that will produce at least $0.01 in the position.
The calculation is based on the break-even price of the position and not the strike price of the individual options.

How to Use In the Brutus Options Ranker

The Probability of Profit looks at producing, at a minimum, $0.01 of profit for a given options setup.
This can be used with all setup types and you will almost always look to maximize this criterion or target to a specific value that meets your trading objectives.

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