Options Payoff Analyzer

Advanced Payoff Analyzer
P

PayoffPro

NIFTY 50 Spot: 22,000

Strategy Legs

Current Spot Price
Lot Size

Max Profit

₹0

Max Loss

₹0

Breakeven(s)

Calculating…

Payoff Diagram

P&L at Expiry

Target Simulation

22,000
Estimated P&L ₹0
Neutral

How to Use the Options Payoff Analyzer

This tool helps you visualize the risk and reward of various option strategies (like Iron Condors, Spreads, or Straddles) before you execute them.

Step 1: Set Your Environment

Before adding trades, configure the global settings at the bottom of the Strategy Legs sidebar:

  1. Current Spot Price: Enter the current market price of the underlying asset (e.g., NIFTY at 22,000). This centers the chart.
  2. Lot Size: Enter the number of units per lot (e.g., 50 for NIFTY). All P&L calculations will be multiplied by this number.

Step 2: Build Your Strategy (Adding Legs)

Each “Leg” represents a specific option contract in your strategy.

  1. Click + Add Leg to create a new contract card.
  2. Action: Choose BUY (Debit) or SELL (Credit).
  3. Type: Choose CALL (CE) or PUT (PE).
  4. Strike: Enter the price at which the option becomes exercisable.
  5. Premium: Enter the price you paid or received per unit.
  6. Lots: Adjust how many lots of this specific leg you are trading.

Step 3: Analyze the Payoff Diagram

The chart on the right updates instantly as you change your legs:

  • Blue Line: Represents your Profit or Loss at the moment of expiration.
  • Shaded Green Area: Indicates the “Profit Zone” (where the blue line is above the center 0 line).
  • Shaded Red Area: Indicates the “Loss Zone” (where the blue line is below the center 0 line).
  • Horizontal Gray Line: This is the zero-baseline. Where the blue line crosses this is your Breakeven.

Step 4: Check the Summary Metrics

The sidebar provides a quick financial snapshot:

  • Max Profit: The highest possible gain. If the line goes up indefinitely, it will show “Unlimited.”
  • Max Loss: Your maximum risk. For “Buying” options, this is usually limited to the premium paid.
  • Breakeven(s): The exact stock prices where your P&L is zero.

Step 5: Run a Target Simulation

Use the Target Simulation section at the bottom to play out “What if?” scenarios:

  1. Move the Projected Spot Price slider.
  2. The vertical line on the chart (if visible) or the Estimated P&L box will show exactly how much money you would make or lose if the stock expires at that specific price.

Pro Tips

Mobile Use: The app is responsive; you can use the sliders and inputs easily on a tablet or phone.

Credit Spreads: To build a Bull Put Spread, Sell a Put at a higher strike and Buy a Put at a lower strike.

Removing Legs: Click the small ✕ icon on the top-right of any leg card to remove it from the calculation.