Pick a strategy. The scale never moves, so you can watch the shape. Grab the blue dot and drag it left and right to move the stock price. Drag the strike line to reshape the trade. Lock any variable to hold it still and isolate one effect. Defaults use TSLA at $420.
Profit / loss per share at expiration
At expiration Value today (drag the dot) Breakeven
Max profit
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Max loss
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Breakeven
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stock price to break even
Risk / reward
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Plain English
Three things to know about payoff diagrams:
See the whole trade before you place it. In practice the max loss, the max profit, and the breakeven are all on the picture before you risk a dollar.
Bought options cap the loss. A long call or put flattens onto a floor at the premium you paid, and not a cent past it.
The shape is the strategy. Where the line bends and flattens tells you exactly what you are betting on and what you are giving up.
Taxes are not shown here. Options and the underlying stock are taxed differently, and it depends on your holding period and account type. None of this is tax advice.