Options Payoff Calculator
Visualize options strategy payoff with P&L diagram. Supports calls, puts, spreads, straddles & strangles.
Frequently Asked Questions
What is an options payoff diagram?
A payoff diagram shows your profit or loss at different expiry prices. The x-axis is the underlying price and y-axis is P&L. It helps visualize the risk-reward of any options strategy.
What is a bull call spread?
Buy a lower strike call and sell a higher strike call. Max profit is limited (difference in strikes minus net premium). Max loss is limited to net premium paid. Used when moderately bullish.
What is a straddle?
Buy both a call and put at the same strike price. Profits when the stock makes a big move in either direction. Max loss is the total premium paid. Used before earnings or big events.
What is breakeven in options?
For calls: Strike + Premium. For puts: Strike - Premium. At the breakeven price, your profit exactly equals the premium paid. Beyond breakeven, you make money.
What is max profit and max loss?
For buying options: max loss is premium paid, max profit is unlimited (calls) or strike minus premium (puts). For selling: max profit is premium received, max loss can be unlimited (naked calls).