POP & Expected Value Calculator: The Math Most Traders Skip

Probability of profit (POP) and expected value (EV) are the two metrics that determine whether a strategy has positive long-run edge. The calculator computes both for any options structure based on current chain pricing and strike selection.

POP is the percentage of outcomes where the position closes above breakeven at expiration. A short put at the 0.30 delta strike has roughly 70% POP. A long call at the same delta has roughly 30%. Knowing POP without knowing risk-reward is misleading: a 70% POP strategy with $5 risk to make $1 has worse expected value than a 30% POP strategy with $1 risk to make $5.

Expected value combines POP and risk-reward into a single number: (POP × max gain) − ((1 − POP) × max loss). Positive EV strategies make money over many trades; negative EV strategies bleed regardless of individual outcomes. The calculator forces you to see both — and the highest-ROI trades are usually the ones with the best EV, not the highest POP.

Frequently Asked Questions

What's a good EV target?

Positive expected value is the minimum bar. A typical premium-selling structure should target $0.20–$0.50 of EV per dollar at risk.

Is POP at expiration or at any point during the trade?

At expiration. Different POP metrics exist (POP touch, POP at any point) — most calculators use POP at expiration as the standard.

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