Option strategies payoff diagrams. Collar Strategy Basic Characteristics.

Option strategies payoff diagrams The maximum loss on the trade is defined at entry by the two long options contracts’ combined cost. See O ptions Strategy Evaluation Tool page for further information. Since visual representations help, it can be said that a payoff diagram is a convenient way to envision what happens with call/put option strategies when the underlying asset’s value changes. Y-Axis: Displays the potential payoff (profit or loss) for your selected options strategy. Built-Up Scrip Symbol. Strategy Builder. Utilizing the The exact underlying price where an option strategy's payoff turns from profit to loss or vice versa is known as break-even point. Curve Line: The line representing the payoff indicates how your profit or loss changes based on the stock price. As the option is a call option, exercising the option me Option Alpha's interactive payoff diagrams use live pricing to update key position metrics and probabilities to help traders visualize their trades in real time. Live Options Chains View live chains for any assets with listed options, including Greeks. Now we are going to expand it to also work with positions involving multiple options – strategies such as straddles, condors, butterflies In this comprehensive tutorial, we'll explore the process of constructing call and put option payoff diagrams using Microsoft Excel. The payoff diagram shows how the option's total profit or loss (Y-axis) depends on underlying Vertical spreads are directional option strategies which involve two options of the same type, same expiration, and different strikes. Analyze real-time payoff diagrams of Bull call spreads, Iron condor & all strategies, etc. The diagrams re-calculate probabilities continuously The following figure, from the Options Industry Council's website, shows different options strategies and their typical profit and loss diagrams. Binary options payoff diagram portraying the all-or-nothing payoff structure, emphasizing the fixed payouts that occur if the asset price meets predetermined criteria, suitable for investors intrigued by clear and definitive outcome propositions. Options OI. Let's conclude with a payoff diagram and a summary. The strap option is a market neutral strategy with a bullish skew that offers profit potential no matter the direction of price, but double the profit on the upside. In the dropdown in cell N20, you can select whether to show the payoff without initial cost ("Value") or profit or loss including initial cost ("P/L"). PAYOFF DIAGRAM MEANING • “Pay off diagrams” a good way to understand the profits and losses with a strategy • A convenient way to envision what happens with option strategies as the value of the underlying asset changes is with the use of a profit and loss diagram, known as a “payoff diagram”. Call Option Payoff Diagram, Formula and Logic; All Option Strategies A-Z. Fixed. Call OI. This allows you to see how much you can An Option Pay-Off diagram is nothing but a graphical representation of an option's profit or loss profile. 2. Unlike stocks, which have one-dimensional payoff graphs either upward or downward sloping, and theoretically unlimited holding periods, option strategies are impacted by cubic pricing events. Collar Strategy Basic Characteristics. The underlying asset and the bond (with face value $100) have the following payoff diagram: 10 Option Option payoff-6 Asset price Payo®of a straddle 100 100 @ @ @ @ @ @ @@ ¡ ¡ ¡ ¡ ¡ ¡ ¡¡ The payoff diagram of a long stock position is still quite simple. In this example the trader has bought a $325 strike put and sold a $320 strike put for a net $1. Put-Call Payoff at Expiration. We have already mentioned that bull put spread is the other side of bear put spread. Understanding payoff graphs (or diagrams as they are sometimes referred) is Drawing Option Payoff Diagrams in Excel; All of Macroption. Get Option Alpha 100% FREE by simply connecting your TradeStation or Tradier The new options strategy payoff diagrams dynamically adjust throughout the trading day so you always have real-time information at your fingertips. help. Price & Volume. You can select what is shown using the dropdown boxes in cells K20-N26 , titled Chart Settings . Your break even point on this graph or the point at which your payoff diagram crosses over into a profit potential zone from a loss, and this line or this representation here left, and right Option Strategies in General. But it is a good and simple way to understand how payoff diagrams function. It has similar payoff to bull call spread. Bearish Strategies Neutral Strategies Event Driven Strategies Stock Combination Strategies. Strike 23700. A payoff diagram can help you visualize Payoff diagrams are a common tool used in options trading. Options and Volatility Tutorials; Option Strategies; Option Markets; Excel Calculators; Customer Feedback and References; About; Contact The resulting payoff is also charted on a diagram to visualize how it changes with the stock price. The strategy is unaffected by the movement of the stock price, as the spreads will cancel out when closed at expiration. Call Butterfly payoff diagram. Understanding Payoff Diagrams in Options Trading. Here is an example: What we are looking at here is the payoff graph for a long call option strategy. In long strangle payoff diagram, maximum loss occurs between the two strikes. By seeing the payoff diagram of a call option, we can understand at a glance that if the price of underlying on expiry is lower than the strike price, the call options holders will lose money equal to the premium paid, but if the underlying asset Long Straddle payoff diagram. Option payoff charts, also known as profit and loss (P&L) diagrams, provide a visual representation of the potential outcomes of options strategies at expiration. Browse Courses Trending Courses. Below the lower ($45) Related Option Strategies. Track . On an algo trading platform like uTrade Algos, traders can use a payoff diagram generator to create detailed option payoff charts for various strategies. On this page: The List; Typical Strategy Groups with Three Legs; Ladders; Butterflies; (call or put) as the other options. Step-by-step instructions on how to set up each of the top 20 options strategies we trade. • ullish Strategies. Simply select a 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. In the graph below you can see how the profit or loss behaves under the different scenarios and how the two options are driving it. Get vital data using this strategy builder tool and check breakeven, other data points Put protective option payoff strategy diagrams strategies diagram options explained etf profit loss Profit loss vs price graphs Put payoff option diagram buying. You can select individual chart series in the For example, a collar on a stock currently trading at $100 may be entered for a debit with a $105 call option and $95 put option, a credit with a $104 call option and $95 put option, or costless with a $105 call option and $94 put Sensibull - India’s Largest Options Trading Platform Loading Profit and loss diagrams show where options strategies will make or lose money based on the underlying asset’s price. Payoff Diagrams. Options trading can be a complex and intricate world, filled with various strategies and tools that traders use to maximize their profits and minimize their risks. web. • For put options, plot payoff diagram using strike price, a decreasing underlying price and the corresponding intrinsic value. Trade. ) for individual strategies which you can select in the dropdown boxes at the top of the Main sheet. These charts plot the profit or loss of an options position against the underlying asset's price at expiration, allowing traders to assess risk-reward scenarios and evaluate strategy Kotak Securities' Payoff Analyzer is an online tool for building and analysing options strategies on your fingertips. Similar Option Strategies Another strategy very similar to long straddle in virtually all characteristics (non-directional, long volatility, limited risk, unlimited upside) is long strangle . Debit payoff profit Option strategy payoff calculator user guide Options trading 101: options explained in plain This option strategy calculator allows you to determine the payout at maturity of basic option strategies constructed with European-style put and call options. The payoff diagram for a long box spread is simply two long debit spreads with the stock price somewhere between the long and short strike prices. Below you More practice on options trading strategies. The main difference is that bull call spread uses calls rather than Payoff diagrams are drawn using data from this sheet. For call options, plot payoff diagram using strike price, an increasing underlying price and the corresponding intrinsic value. This options strategy consists of different call or put options on the same underlying asset with the same expiration date but with different strike or exercise prices. Learn how to read and analyze Put Option Payoff diagrams, understand the dynamics for both buyers and writers. Iron Condor Basic Characteristics. The payoff diagram of a short call position is the inverse of long call diagram, The formulas are the same as those for long call option strategy, only the profit or loss is multiplied by -1, because you are taking the Payoff Diagram. It is What Synthetic Strategies Do. Complex option strategies will have different pay-offs for each leg of an option. Alerts. Option payoffs are the reward or return from options trading. Explore the strategy of buying Put Options in a weak market. Here is an example; Underlying: MSFT Type: Call Option Exercise Price: $25 Expiry Date: 25th May (30 days until expiration) The market price of this call option $1. Advanced Options Volatility Trading: Strategies and Risk Management You can explore the course on Options trading strategies in Python to learn about option payoff. With the advancement of technology, traders now have access to powerful tools that can generate and analyse payoff curves with ease. The risk profile is often best viewed visually Step-by-step guide to choosing the best options strategy for any market setup. We have learned how to calculate profit or loss for a single option and for strategies with multiple legs. You can select unto 3 call options and 3 put options. For options, profit-loss diagrams are simple tools to help you understand and analyze option strategies before investing. By understanding the potential payoffs, you can confidently make Let's look again at the basics of a Call Option. News. In the previous four parts we have explained option profit or loss calculations and created a spreadsheet Understanding Your Payoff Diagram. It is often easier to understand the risk profile when viewed on the payoff diagram, which is shown in the chart in the middle of the sheet. com Payoff various Option profit payoff loss diagrams strategy vs options graphs spread call spreads different put price butterfly bluendi time buy strike Spreadsheet excel option payoff strategy options profit improvements tutorial knowledge required beforeProfits from buying a put option: payoff diagram 👍 Bull call spread option strategy guideThe butterfly payoff. I will now present a few more payoff diagrams of relative simple option strategies. The investors can either take four butterfly call options or four butterfly put options, or a combination of Covered Call: Option Strategy Payoff Calculator. You can see the payoff diagram below. Simply select a strategy, enter the option parameters, and click the 'Show diagram' button to view a A vertical spread options strategy involves buying and selling two options with different strike prices and the same expiration date. It is This picture is an example of a pay-off diagram from the Options Strategy Evaluation Tool. Before understanding the payoff diagram of a collar strategy, let's see the graph of a simple options payoff with no additions. Long-call option ; Short-call option; Long-put option; Short-put option ; What is the use of a pay-off diagram? It is a useful tool to understand the profit scenarios of complex option strategies. While it looks attractive and safe when looking at the payoff diagrams, it is not that easy to trade straddles profitably in practice. If the stock is above the strike at expiration, the put expires worthless. Put OI. Bear put spread is a bearish strategy – it profits when underlying price goes down. The diagrams above provide a clear contrast between two variations of seagull options. Features include pay-off charts and option greeks. Options Strategy Analysis Tool: Assess, using pay-off diagrams, the profitability of any number of options trading strategies and deals. The payoff diagram for a risk reversal is very similar to a long stock position other than the “flat bit” in the middle. For example, a collar strategy involves buying a put option and selling a call option with a higher strike price, providing similar downside protection and limited upside potential. This will be either the option's intrinsic value if the underlying price chosen is in-the-money or zero if the underlying price is out-of-the-money. Read the whole strategy guide in less than 2 hours and have it forever to reference. The long straddle payoff diagram resembles a “V” shape. The simplest option strategy is the covered call, which simply involves writing a call for stock already owned. In the same way as shown above, you can compare iron condors or broken wing condors to any other option strategies, such as butterflies, straddles, vertical spreads, or completely In the chart you can display the payoff diagram for the entire straddle, as well as individual legs. Synthetic option strategies imitate the payoff and risk exposures of other strategies using different securities. Below the strike price of 100, t h e p u t o p t i o n e a r n s 100, the put option earns 100, t h e p u t o pt i o n e a r n s 1 for every $1 depreciation of the underlying. Here, the options strategy is such that the profit is only earned up to a certain limit – as specified by the red check marks on the diagram above. enabling sophisticated strategies sometimes not achievable with beginner options strategies Download this free spreadsheet to form various option strategies and view their payoff diagrams. Options Payoffs and Profits (Calculations for CFA® and FRM® Exams. The pay-off diagram makes it easy to see how time decay impacts your strategies by letting you decrease the time from deal date to Long Box Spread payoff diagram. SD. It has limited loss and unlimited potential profit. Options and Volatility Tutorials; Option Strategies; Option Markets; Excel Calculators; Customer Feedback and References; About; Contact; The following are option strategies based on the straddle position (call option and put option with the same strike and expiration) – plain long the option expires worthless or with intrinsic value lower than what you sold the option for. Below we can see what the payoff diagram of a collar would look like. This strategy booklet is not intended to cover every possible options strategy, but to explain the more popular strategies. Strategies: Data (each leg option type, direction, order of strikes etc. different This option strategy calculator allows you to determine the payout at maturity of basic option strategies constructed with European-style put and call options. The main difference is that bull call spread uses calls rather than Understanding option payoff charts Put option payoff calculator repair * faqogumypoze. If MSFT stays between the short put and long call the profit or loss will be equal to the premium received / paid. Here is a payoff diagram of a long call on the expiration date. What we are looking at here is the payoff graph for a bear put spread option strategy. It has limited loss and limited profit Drawing Option Payoff Diagrams in Excel; All of Macroption. The chart in the middle of the Main sheet can display payoff diagram for the entire covered call, as well as individual legs. On the left, the configuration with 2 This page explains bear put spread profit and loss at expiration and the calculation of its maximum profit, maximum loss, break-even point and risk-reward ratio. The position consists of two put options (hence "put spread"): Buying a put with higher Option Strategies in General. +--Speak Now. OI data. In this Option Payoff Excel Tutorial you will learn how to calculate profit or loss at expiration for single option, as well as strategies involving multiple options, such as spreads, straddles, condors or butterflies, draw option payoff diagrams in Your option strategy payoff diagram is an ever evolving and changing animal. We have learned how to draw option payoff diagrams in Excel, and calculated maximum profit, maximum loss, risk-reward ratio and break-even points. Advanced Payoff Diagrams Plot specific payoff diagrams of your strategy. Portfolio Construct your own portfolio and beta weight it against any market. See feature highlights for a quick overview. Long put is a bearish option strategy with one leg. For example, a combination of short underlying and long call option creates the same payoff as a long put option (with the same strike as the call) – this strategy is known as synthetic put. Iron Butterfly Payoff Diagram & Summary. A payoff diagram can help you visualize your risk and rewards at different stock prices at expiration. In the previous parts (first, second, third) we have created a spreadsheet that calculates profit or loss for a single call or put option, given the strike price, initial option price and underlying price. Build customized strategy through Payoff Analyzer using Kotak Neo App. Covered Call; Protective Put; Bull Call Spread; Bear Put Spread; Long Straddle; Drawing Option Payoff Diagrams in Excel; All of Macroption. This picture is an example of a pay-off diagram from the Options Strategy Evaluation Tool. Learn how to read Option Pay-Off charts at TradeSmart. The payoff diagram shows maximum profit between the two inner strikes. Graph 1. Collar is an option strategy that involves a long position in the underlying, a short call and a long put. 30 per contract (or $130 for a standard An option payoff diagram is a graphical representation of the net Profit/Loss made by the option buyers and sellers. On Expiry. all at the same time. Below you can find a short strangle payoff diagram (blue) with contributions of the two legs – the short put Benefits of a Payoff Diagrams. Price & The payoff will also be flat here. Custom Option Strategy Builder for your Futures & Options Strategies. Bull call spread profit and loss profile is very similar to bull put spread. Search. Other tips for using the chart: You may also use your mouse wheel to zoom in or out on the chart. Open Interest. Idea Generation Use our advanced screener to review specific options with the highest probability of profit. 65. Initial cash flow equals the premium paid for both options: in our example, $187 for the put plus $202 for the call, which is $389 for the entire strangle. . This is the final part of the Option Payoff Excel Tutorial. Login. Namely, time decay (Theta), implied volatility Therefore a call option's intrinsic value or payoff at expiration depends on where the underlying price is relative to the call option's strike price. search. Popular Strategies. It has limited constant loss below the lower Build smart and profitable Options Trading Strategies for NSE Nifty, Bank Nifty, and Stocks. Payoff diagrams are a way to understand profits and losses associated with the buying and selling of options better. The user inputs stock and option positions, including strike prices and number of contracts. It's also important that you understand how they work because When you trade options it can be difficult to understand all your potential profits and losses. Analyse Payoff Graph Payoff Table. Bull Put Spread Payoff Diagram. This is part 5 of the Option Payoff Excel Tutorial, which will demonstrate how to draw an option strategy payoff diagram in Excel. Whether you're a novice 15. When underlying price gets above the short call strike or below the short put strike, total Short Option Payoff and Position Size; Calculating Option Strategy Payoff in Excel; Drawing Option Payoff Diagrams in Excel; Calculating Option Strategy Maximum Profit and Loss; Calculating Option Strategy Risk-Reward Ratio; Calculating Option Strategy Break-Even Points; Option Strategy Payoff Spreadsheet: Further Improvements Understanding payoff graphs (or diagrams as they are sometimes referred) is absolutely essential for option traders. Bear Put Spread Basic Characteristics. We add a long put option with a strike price of X (blue): slope = −1 to the left of X, slope = 0 to the right of X. Build smart and profitable Options Trading Strategies for NSE Nifty, Bank Nifty, and Stocks. If the call is unexercised, then the call writer keeps the premium, but retains the stock, for which he can still receive any dividends. The difference between the Put protective option payoff strategy diagrams strategies diagram options explained etf profit lossOptions trading 101: options explained in plain english Payoff option put derivatives call options long short profit diagrams off profile calculator repair overview types sell strike holder contractsPayoff option diagram profit loss graphical Long call is a bullish option strategy with one leg. Our spreadsheet has become a powerful tool to analyze potential option A vertical spread options strategy involves buying and selling two options with different strike prices and the same expiration date. 2. Here, the existing payoff diagram (yellow) has a slope of +1. Put an X on the grid in the appropriate place as in diagram 1. Here is an example: What we are looking at here is the payoff graph for a covered call option strategy. Option Strategies in General. The vertical spread strategy gets its name because the strike Bull Call Spread Payoff Diagram. Step 4: Determine the option's value. For instance, this is bull call ladder payoff: This page explains iron condor profit or loss at expiration and the calculation of its maximum profit, maximum loss, break-even points and risk-reward ratio. Now we are going to expand it to also work with positions involving multiple options – strategies such as straddles, condors, butterflies Using Payoff Curves on an Algo Trading Platform. Download to use. Understanding Option Payoff Charts. With this visual aid, you can better assess how Option Strategy Payout Diagram Example by Market Chameleon. The payoff of a collar can be understood through the use of a payoff diagram. The spreadsheet allows you to create option strategies by combining long and short positions in stocks, call options and put options. Payoff diagram of the collar strategy looks similar to bullish vertical spreads (bull call spread and bull put spread). Call, Put, Long, Short, Bull, Bear: Terminology of Option Positions; Option Strategy Legs Explained; As you can see in the diagram, a long put option's payoff is in the positive territory on the left side of the chart and the total profit increases as the underlying price goes down. Our Services Portfolio Read More Collar is one of very few option strategies which involve all the three types of instruments: the underlying asset, a call option, Payoff Diagram. Call, Put, Long, Short, Bull, Bear: Terminology of Option Positions; Option Strategy Legs Explained; Drawing Option Payoff Diagrams in Excel; All of Macroption. Their payoff diagram has a shape similar to ratio spreads, only with a gap between strikes. Dual Puts. After generating the payoff diagram, you will see: X-Axis: Represents the stock price at expiration. We already know that iron butterfly is a combination of short straddle and long strangle, or a combination of bull put Example 2. For example, to create a short covered call, buy a stock This is part 4 of the Option Payoff Excel Tutorial. The options can be call or put options but must be the same type. Individual chart series are set in the dropdown boxes in cells K22-N26. If we look at the slopes: to the left of X we have (+1) + (−1) = 0 (original plus Payoff Diagrams The central point of the calculator's Main sheet is the chart, which shows payoff diagrams for individual legs and/or the entire spread. Covered Call. By plotting the payoff for the underlying asset, long put option, and short call option we can see what the collar position payoff 4. The payoff table calculates the profit or loss at different stock prices at expiry. The difference between the two options' strike prices is called the spread width. Investors use payoff graphs vs profit & loss diagrams to determine returns from options trading. It involves three strike prices to carry out four trades altogether. It got its name from the shape of its payoff diagram, which resembles a condor with wide wingspan: Just as seagulls expertly navigate the ocean’s breezes, the seagull option strategy adeptly dances through the unpredictable market currents, Comparative Payoff Diagrams of Seagull Options: Dual Calls vs. This page explains what they have in common, how they differ, and which vertical spread strategies to use in different situations. That’s right. What is an Options Payout Diagram? When you trade options it can be difficult to understand all your potential profits and losses. Debit payoff profitPayoff option diagram profit loss graphical representation Option strategiesPayoff diagrams for option strategies. Step 3: Pick a specific price for the underlying. The difference is obviously that the latter uses puts rather than calls Payoff Diagrams. The resulting payoff diagram (green) is horizontal to the left of X; to the right of X the payoff has a slope of +1. The blue line shows overall bull put spread P/L, Similar Option Strategies. Payoff Diagram. A Payoff diagram is a graphical representation of the potential outcomes of a Explore how option strategy payoff diagram and charts helps in elevating your trading positions, improves decision-making, and optimizes the percentage of returns on your investments in the dynamic options market. Here, the asset price (X-axis) is plotted against profit/ loss (on Y-axis). Payoffs cfa payoff profit profits calculations equation analystprep exams paid Option profit payoff loss diagrams strategy vs options graphs spread call spreads different put price butterfly bluendi time buy strike Payoff diagrams for The following is a list of all option strategies which consist of three legs. 36L. If the call is exercised, then the call writer gets the exercise price for his stock in addition to the premium, but he foregoes the Looking at a payoff diagram for a strategy, we get a clear picture of how the strategy may perform at various expiry prices. The pay-off diagram makes it easy to see how time decay impacts your strategies by letting you decrease the time from deal date to The exact underlying price where an option strategy's payoff turns from profit to loss or vice versa is known as break-even point. fc2. Options and Volatility Tutorials; Option Strategies; Option Markets; Excel Calculators; Customer Feedback and References; About; Contact Long strangle is a debit strategy, because we are buying options. When completed, a profit-loss diagram shows the profit potential, risk potential and breakeven point of a potential option play. In graph 1, the regions of unlimited loss and gain are clear. Learn more with Option Alpha. Understanding payoff graphs (or diagrams as they are sometimes referred) is absolutely essential for option traders. This is part 4 of the Option Payoff Excel Tutorial. Options and Volatility Tutorials; Option Strategies; Option Markets; Excel Calculators; Customer Feedback and Comparison to other strategies: When considering the limitations of payoff diagrams for seagull options, it can be helpful to compare them to other option strategies. The maximum loss on the trade is defined at entry by the combined cost of the four call options and is realized if the underlying stock price closes above or below the long options at expiration. 41L. Buying the option means you pay this price to the seller. Iron butterfly can be found in the following option strategy groups (using dropdown boxes in cells C3, D3, E3): All Groups (E3) / All Strategies (E4) / Iron Butterfly (E5) Payoff Diagram. View "Greeks" graphically. The strategy uses two call options to form a range consisting of a high strike price and a low strike price. Built-Up Breadth. Bull Call Spread Option Payoff Graph. There are four possible vertical spreads: bull call spread, bear put spread, bear call spread, and bull put spread. Collar Option Payoff Diagram. Calculate option strategy profit/loss, break-even points and risk-reward ratios; Payoff diagrams of entire position and/or individual legs; Compare two different strategies in one chart; Model position adjustments or variations (e. Short Call Payoff Diagram. The common approach is for both the call and the put to be out of the money – the call strike is typically higher and the put strike lower than underlying price at time of entering a collar position. It is a basic Use a Payoff diagram to visualize all possible financial outcomes of a strategy. The objective of an iron condor trade is for underlying price to stay between the inner strikes and all the four options to expire worthless. This spreadsheet simulates the payoff of option strategies. Try drawing a payoff diagram of a vertical bull spread with K = 25 for the long call and K = 30 for the written call. The profit potential is technically unlimited, though a large move in one direction before expiration is required. Futures OI. Options and Volatility Tutorials; Option Strategies; Option Markets; Excel Calculators; Customer Feedback and References; About; Contact; Short call (also naked call or uncovered call) is This booklet contains payoff diagrams for some of the more popular strategies used by option traders. Below the put strike and . g. Let’s assume that the market price is $53. The payoff diagram of a put option looks like a mirror image of the call option (along the Y axis). There are 4 types of pay-off diagrams as mentioned below. As you can see, a long call is a defined risk strategy. The payoff diagram of a long call butterfly defines the maximum risk and reward. Discover the advantages and new features of Payoff Analyzer here. Short strangle has two such points – one below the put strike and one above the call strike. Iron condor is a non-directional short volatility strategy with limited risk and limited profit potential. One such tool that is widely used in options trading is the payoff diagram. BgCalc: Items for dropdown boxes, This booklet contains payoff diagrams for some of the more popular strategies used by option traders. All»Option Strategies»Long Call. Example. 56. Open Free Account. Then, draw the payoff diagram of a strategy that sells a put with K = 30 and Custom Option Strategy Builder for your Futures & Options Strategies. Similar Option Strategies. 401 Lecture 6: Options Using the payoff diagrams, we can also examine the payoff of a portfolio consisting of options as well as other assets. Our Option Strategy Payoff Diagram Tool is your go-to resource for evaluating and visualizing options trading strategies. A payoff graph will show the option position’s total profit or loss (Y-axis) depending on the underlying price (x-axis). ptfsj ltnz yebgfn qdjvtas kjrtbzb ifukui eotip ezs bgor ixua