Option Payoff Charts

Long Call
Exercise price 40
Premium 5

Spot Price 10 20 30 40 45 50 60 70
Premium (5) (5) (5) (5) (5) (5) (5) (5)
Profit / Loss on exercise 0 0 0 0 5 10 20 30
Net Payoff (5) (5) (5) (5) 0 5 15 25

30
25
20
15
10
5
0
(5) 0 10 20 30 40 50 60 70 80
(10)

Long Put
Exercise price 40
Premium 5

Spot Price 10 20 30 40 45 50 60 70
Premium (5) (5) (5) (5) (5) (5) (5) (5)
Profit / Loss on exercise 30 20 10 0 0 0 0 0
Net Payoff 25 15 5 (5) (5) (5) (5) (5)

30
25
20
15
10
5
0
(5) 0 10 20 30 40 50 60 70 80
(10)

Long Call & Short Put

Exercise price (L-Call) 40 Exercise price (S-Put) 60
Premium 5 Premium 5

Spot Price 10 20 30 40 45 50 60 70
Net Premium 0 0 0 0 0 0 0 0
Profit / Loss on exercise (50) (40) (30) (20) (10) 0 20 30
Net Payoff (50) (40) (30) (20) (10) 0 20 30

40
30
20
10
0
(10) 0 10 20 30 40 50 60 70 80
(20)
(30)
(40)
(50)
(60)

Long Call & Long Put

Exercise price (L-Call) 40 Exercise price (L-Put) 60
Premium 5 Premium 5

Spot Price 10 20 30 40 45 50 60 70
Net Premium (10) (10) (10) (10) (10) (10) (10) (10)
Profit / Loss on exercise 50 40 30 20 20 20 20 30
Net Payoff 40 30 20 10 10 10 10 20
45
40
35
30
25
20
15
10
5
0
0 10 20 30 40 50 60 70 80

Long Stock & Long Put Protective Put

Exercise price (L-Stock) 40 Exercise price (L-Put) 60
Premium 0 Premium 5

Spot Price 10 20 30 40 40 50 60 70
Net Premium (5) (5) (5) (5) (5) (5) (5) (5)
Profit / Loss on exercise 20 20 20 20 20 20 20 30
Net Payoff 15 15 15 15 15 15 15 25
30

25

20

15

10

0
0 10 20 30 40 50 60 70 80
20

15

10

0
0 10 20 30 40 50 60 70 80
Short Call
Exercise price 60
Premium 5

Spot Price 15 30 45 60 65 75 90 105

Premium 5 5 5 5 5 5 5 5
Profit / Loss on exercise 0 0 0 0 (5) (15) (30) (45)
Net Payoff 5 5 5 5 0 (10) (25) (40)

10

0
10 20 30 40 50 60 70 80 90 100 110
(10)

(20)

(30)

(40)

(50)

Short Put
Exercise price 60
Premium 5

Spot Price 15 30 45 60 65 75 90 105

Premium 5 5 5 5 5 5 5 5
Profit / Loss on exercise (45) (30) (15) 0 0 0 0 0
Net Payoff (40) (25) (10) 5 5 5 5 5

10

0
10 20 30 40 50 60 70 80 90 100 110
(10)

(20)

(30)

(40)

(50)

Long Put & Short Call

Exercise price (L-Put) 40 Exercise price (S-Call) 60
Premium 5 Premium 5

Spot Price 10 20 30 40 45 50 60 70
Net Premium 0 0 0 0 0 0 0 0
Profit / Loss on exercise 30 20 10 0 0 0 0 (10)
Net Payoff 30 20 10 0 0 0 0 (10)

35
30
25
20
15
10
5
0
(5) 0 10 20 30 40 50 60 70 80
(10)
(15)

Short Call & Short Put

Exercise price (S-Call) 40 Exercise price (S-Put) 60
Premium 5 Premium 5

Spot Price 10 20 30 40 45 50 60 70
Net Premium 10 10 10 10 10 10 10 10
Profit / Loss on exercise (50) (40) (30) (20) (20) (20) (20) (30)
Net Payoff (40) (30) (20) (10) (10) (10) (10) (20)

0
(5) 0 10 20 30 40 50 60 70 80
(10)
(15)
(20)
(25)
(30)
(35)
(40)
(45)
Long Call & Short Call
Exercise price (L-Call) 40 Exercise price (S-Call) 60
Premium 5 Premium 5

Spot Price 10 20 30 40 45 50 60 70
Net Premium 0 0 0 0 0 0 0 0
Profit / Loss on exercise 0 0 0 0 5 10 20 20
Net Payoff 0 0 0 0 5 10 20 20
25

20

15

10

0
0 10 20 30 40 50 60 70 80

Long Put & Short Put

Exercise price (L-Put) 40 Exercise price (S-Put) 60
Premium 5 Premium 5

Spot Price 10 20 30 40 45 50 60 70
Net Premium 0 0 0 0 0 0 0 0
Profit / Loss on exercise (20) (20) (20) (20) (15) (10) 0 0
Net Payoff (20) (20) (20) (20) (15) (10) 0 0

0
0 10 20 30 40 50 60 70 80
(5)

(10)

(15)

(20)

(25)