Option Payoff Calculator
Plot the profit/loss at expiration of a single call or put (long or short) and see its break-even, maximum profit, and maximum loss.
Calculator
Underlying units (e.g. 100 per contract).
Payoff at expiration
Profit/loss (y) vs. underlying price at expiry (x). Dashed line = break-even.
Formula
- Call intrinsic = max(Spot − Strike, 0)
- Put intrinsic = max(Strike − Spot, 0)
- Long P/L = (Intrinsic − Premium) × Quantity (short = the negative of this)
- Break-even: Call → Strike + Premium · Put → Strike − Premium
How it works
An option's payoff at expiration depends on where the underlying settles relative to the strike. A long call profits above the strike once it has recovered the premium; a long put profits below it. Selling either flips the payoff: you collect the premium but take on the opposite risk profile.
The diagram makes the asymmetry concrete. Long options have a capped loss (the premium) and, for calls, uncapped upside. Short options collect a capped premium but can lose far more — an uncapped loss for a short call.
This models a single leg at expiration and ignores time value, fees, and assignment mechanics before expiry. It is an educational visualization, not advice or a recommendation to trade options, which carry significant risk.
Example use cases
Long call
Strike 100, premium 5 → break-even 105. Max loss is the $5 premium; upside is uncapped above 105.
Short put
Strike 100, premium 4 → break-even 96. Max profit is the $4 premium; max loss is $96 if the underlying goes to zero.
Frequently asked questions
Does this account for time value before expiry?+
No. It shows the payoff at expiration only. Before expiry, an option's market value also reflects time value and implied volatility, which this simple model does not include.
What does 'unlimited' loss mean for a short call?+
A short (naked) call has no upper bound on the underlying, so its potential loss is theoretically unlimited. This is why such positions are considered high risk.