Payoff Diagram

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.

Profit and loss diagrams are visual aids that display where an options strategy will make or lose money at expiration based on the underlying asset’s price. Profit and loss diagrams illustrate the potential outcomes of a strategy, including the break-even points, max loss, and max gain.