The Payoff Diagram, Computed

An option's value at expiry is a simple piecewise function — intrinsic value minus premium. This options profit calculator computes the exact profit or loss for calls and puts at any stock price, and draws the classic payoff diagram.

The Three Key Prices

The strike defines where the option gains value; the break-even (strike ± premium) defines where you stop losing; and the chart shows the whole line in between. Each contract represents 100 shares, so premiums compound by a factor of 100 × contracts.

Risk in One Look

Buying options is defined-risk: the maximum loss is the premium paid, visible as the flat floor of the payoff line. The chart's slope beyond the strike shows the leverage — every dollar of stock movement translates one-for-one into option value.