TheTradeFormula Eagle Eye

Options Payoff Diagram Generator

Visualize profit and loss across different spot prices for options strategies.

Options Payoff Diagram Generator

Reading Payoff Diagrams

Long Call

Buy the right to purchase. Unlimited profit potential, limited to premium paid as loss. Profits when price rises above (strike + premium).

Short Call

Sell the right to purchase. Limited to premium earned, unlimited loss potential. Profits when price stays below strike at expiry.

Long Put

Buy the right to sell. Profits when price falls below (strike - premium). Loss limited to premium paid.

Short Put

Sell the right to sell. Profits when price stays above strike. Loss potential is significant (up to strike - premium).

⚠️ Remember:

  • Green dot = Breakeven point
  • Diagonal line = Payoff at expiry
  • Long positions have limited risk, unlimited/high reward
  • Short positions have unlimited/high risk, limited reward

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