How to see the payoff diagram for an options strategy
The most fundamental thing you can do with an options profit calculator is to view the payoff diagram of an options strategy at expiry. This helps you evaluate the risk and return profile of a strategy when held until expiration.
The P/L chart of a bull spread at expiry
The P/L chart of a bull spread at expiryDefine the strategy you want to analyze
To generate a payoff diagram, you first need to define your strategy in the calculator.
Start by selecting the underlying stock or index in the Underlying section, then choose the options strategy you are interested in. The calculator will prefill a set of option legs for common strategies. Option legs are grouped by expiry, with each expiry shown on its own row.
A put spread
A put spreadIf your strategy is not available as a preset, you can also build it leg by leg. You can add additional expiry groups and option legs as needed to represent more complex structures.
Adjust strikes and expirations
Once the strategy is set up, adjust the expirations and strikes to match the position you want to analyze. You can change expirations by selecting a date or stepping through expiries, and adjust strikes using the strike selector or slider.
As you make changes, the calculator updates the payoff diagram automatically.
View and interpret the payoff diagram
The Result section displays the payoff diagram of your strategy at expiry. You can hover over the chart to see the exact profit or loss for any underlying price.
Key characteristics such as entry credit or debit, maximum profit, maximum loss, and breakeven levels are shown above the chart.
The result section for a bull put spread
The result section for a bull put spreadShare your results
You can share the payoff diagram and strategy setup by clicking the Share button in the Result section. This generates a short link that preserves the option prices and chart configuration, so anyone opening the link sees the same analysis.