Beginner Track

Option Profit & Loss Diagrams

Option profit and loss diagrams are visual aids that illustrate where options strategies will make or lose money at expiration based on the underlying asset’s price. Profit and loss diagrams diagrams help to explain all potential outcomes of a strategy including break-even points, maximum loss, and maximum gain.
Option Profit & Loss Diagrams
Kirk Du Plessis
Apr 19, 2021

Option profit & loss or payoff diagrams help us understand where our options strategies win or lose money at expiration based on different stock price points. It's also important that you understand how they work because they can help you build complex options strategies and adjust trades.

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Reading an Options Pricing Table
Options pricing tables, also known as options chaings, list all relevant information an investor needs to know about an options contract. Learn how to read and understand an options pricing table.

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