Options Payoff Builder

Every options structure is a bent line at expiry, and the bends are where the decisions live. This builder assembles the standard structures, covered call, cash-secured put, collar, straddle, from their legs and draws the payoff across a range of settlement prices.

The chart makes the trade-offs concrete: where the breakevens sit, what the maximum gain and loss are, and which side of the position is open-ended. A covered call caps the upside in exchange for premium; a collar finances its floor by selling the ceiling; a straddle pays twice the premium for the right to profit from movement in either direction.

Reading payoff diagrams fluently is the entry skill of options work: before Greeks, before volatility surfaces, comes knowing exactly what you hold if the market closes at any given price.

Background reading: Hedging in the Knowledge Hub · All tools