Options Profit Calculator
Build single- and multi-leg option strategies and see the exact profit/loss profile at expiration. Calls, puts, longs, shorts, any number of legs. Break-even points and max profit/loss computed automatically.
Results
Payoff at expiration
This 1-leg strategy on an underlying at $100 has a maximum profit of $35.38 and a maximum loss of $-4.62 at expiration. Break-even: $104.62. Hover the chart to see the P&L at any specific price.
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Frequently asked questions
Reading a payoff diagram
A payoff diagram plots the strategy's profit (vertical axis) against the underlying price at expiration (horizontal axis). Where the curve sits above zero, you make money; below zero, you lose money. The points where it crosses zero are your break-evens.
Single-leg shapes
- Long call: hockey-stick — flat loss equal to the premium below the strike, then rising linearly above. Unlimited upside.
- Long put: mirror image — rising linearly as the underlying falls, capped loss at the premium for any price above the strike.
- Short call: capped profit (the premium received), then losing linearly and unlimited above the strike.
- Short put: capped profit, losing linearly below the strike. Loss is large but bounded (stock can only go to zero).
Common multi-leg strategies
- Bull call spread (2 legs): long call at lower strike + short call at higher strike. Capped profit, capped loss. Cheaper than a long call but caps upside.
- Bear put spread (2 legs): long put at higher strike + short put at lower strike. Mirror-image bull spread for downside views.
- Long straddle (2 legs): long call + long put at the same strike. Profits from large moves either direction. Loses if the underlying stays near the strike.
- Long strangle (2 legs): like a straddle but with different strikes (call OTM above, put OTM below). Cheaper than a straddle but needs a bigger move to profit.
- Iron condor (4 legs): short put spread + short call spread. Profits if the underlying stays in a range. Defined max profit and loss.
- Butterfly (3 legs at 3 strikes): peaks at the middle strike, loses if the underlying moves much in either direction.
What the diagram does NOT show
- Pre-expiration P&L. The diagram is at expiration only. Before expiration, time decay (theta), volatility changes (vega), and the underlying movement all interact. The current value lies somewhere between the entry premium and the expiration value.
- Volatility shifts. If implied volatility changes between now and expiration, the value of unexpired options changes. The diagram assumes you hold to expiration.
- Early assignment risk. Short options can be assigned at any time. The diagram assumes you hold the position cleanly to expiration.
- Commissions and slippage. Real fills are slightly worse than mid; for high-leg strategies, commissions add up.
Where to get the premium values
From the option chain on your broker. The mid of the bid-ask is a reasonable estimate for liquid options. Solve for IV using the implied volatility calculator if you want to compare market premiums to model fair value, and use the Black-Scholes calculator if you want to price a leg theoretically before checking the chain.