How to use the multi-leg option payoff calculator
- Add each position: choose call, put or shares, long or short, then enter the strike (or your entry price for shares), the premium per share and the number of contracts or shares.
- Open More options to change the shares per contract, which is 100 for most listed options, or to set the price range of the table.
- Read the maximum profit, the maximum loss, the break-even prices and the net premium paid or received.
- Use the table to see the profit or loss at 13 prices between the lowest and highest price, and download it as a CSV if you want to chart it.
Formula
call at expiry = max(price - strike, 0)
put at expiry = max(strike - price, 0)
option position = side x contracts x shares x (value at expiry - premium)
shares = side x shares x (price - entry price)
Side is +1 for long and -1 for short. The total payoff is the sum over positions. It is a straight line between strikes, so extremes and break-evens are found exactly at the strikes, at a price of 0 and beyond the highest strike.
Three common combinations
A bull call spread buys a $100 call for $5.20 and sells a $110 call for $2.10, one contract each. The net cost is $310.00, the maximum loss is ($310.00) below $100, the break-even price is $103.10 and the maximum profit is $690.00 above $110.
A long straddle buys a $100 call at $4.00 and a $100 put at $3.50. The maximum loss is ($750.00) at $100, with break-evens at $92.50 and $107.50, and no limit on the profit on the upside. A covered call holds 100 shares bought at $98 and sells a $105 call for $2.50. The maximum profit is $950.00, reached at $105 or higher, and the worst case is ($9,550.00) if the shares fall to zero.
Reading a payoff table
The table shows the result if the position is held to expiration and the underlying ends at each price. It is a picture of the shape of a strategy: where it loses, where it breaks even and whether its gain or loss is limited. A line that keeps rising past the top strike has no limit on profit, and a line that keeps falling has no limit on loss. The page says so in words instead of showing a made-up maximum.
Premiums are counted as paid or received per share and then multiplied by the contract size. A credit strategy shows its premium as received, and its maximum profit equals that credit when nothing else adds to the gain.
What is left out
Before expiration an option is worth more than its payoff, because the time left and the volatility matter. For prices before expiration use the Black-Scholes Calculator. The page also leaves out commissions, taxes, margin, early assignment and dividends. For a single call or put, the Options Profit Calculator is simpler. This page is for learning how combinations behave, and it does not recommend any trade.
Assumptions and limits
- Every position is held to expiration, and the underlying price can end anywhere from 0 upward.
- Options use the shares per contract you set, 100 by default. Shares count one for one.
- Commissions, taxes, margin, dividends, early exercise and assignment are not modeled.
- The premiums and strikes in the examples are made-up values for illustration, not market prices.
Frequently asked questions
What does a short position mean here?
Short means you sold the option or shorted the shares. You receive the premium up front and your result is the opposite of the long position at expiry. Short calls and short shares can lose without limit.
Why does the page say there is no limit?
If the total payoff keeps sloping up or down beyond the highest strike, the gain or loss grows with the price forever. The page checks that slope instead of picking a number from the table.
Can I use fractional contracts or shares?
No. Contracts and shares must be whole numbers, because listed options and shares trade in whole units. For a different contract size, change the shares per contract in More options.
Why are some break-evens listed as a range?
If the combination earns exactly zero over a stretch of prices, there is no single break-even there. The page notes that part of the line sits at zero so you are not misled.