Option strategy payoff

How to use this tool

Choose a strategy from the list — the legs fill in automatically, with premiums estimated from Black-Scholes. For a real trade, replace each premium with the live market price. You can also add, remove or edit legs to build any strategy.

How to read the diagram

• The curve is your profit or loss at expiry for each possible price of the underlying.
• Where the curve crosses zero is a breakeven — the price you need just to not lose.
• The flat tops and bottoms show capped profit or loss; a rising or falling end means unlimited in that direction.

A word on the strategies

Buying options (long call/put, straddles) has limited loss but loses value to time decay. Selling options (short call/put, iron condor) collects premium but can carry large or unlimited risk. Spreads cap both sides. Understand the max loss before you trade.

For the building blocks, see calls and puts explained, covered calls & protective puts, and spreads, straddles & strangles.

Read: How to read an option payoff diagram →