Options Strategy Builder
Strategy assumptions
Every leg is assumed to reference the same stock and the same expiration date. This release does not model calendar spreads or different expirations.
Expiration summary
Option legs
Enter one to 4 option legs. Premium is entered per share; contract quantity and shares per contract scale each leg independently.
| Side | Type | Strike | Premium / share | Contracts | Shares / contract | Actions |
|---|---|---|---|---|---|---|
100 shares is standard for most listed U.S. equity-option contracts, while adjusted contracts can represent a different deliverable. Confirm the contract specification for the position you are modeling.
Expiration payoff scenarios
The total is the sum of every entered leg at the same expiration stock price. Breakevens and extrema are solved from the same piecewise-linear payoff, not estimated from this display table.
| Stock at expiration | Leg 1 P/L | Leg 2 P/L | Total strategy P/L |
|---|---|---|---|
| $0.00 | -$600 | +$250 | -$350 |
| $75.00 | -$600 | +$250 | -$350 |
| $100.00 | -$600 | +$250 | -$350 |
| $103.50 | -$250 | +$250 | $0 |
| $110.00 | +$400 | +$250 | +$650 |
| $137.50 | +$3,150 | -$2,500 | +$650 |
How the strategy math works
Each leg uses the same canonical call-or-put intrinsic-value calculation as the single-leg Options Profit/Loss Calculator. Long legs subtract premium paid from expiration intrinsic value; short legs reverse that payoff and add premium received. The strategy result is the sum of those leg-level P/L values.
Because same-expiration option payoffs are piecewise linear in the stock price, the builder can solve exact expiration breakevens at and between strikes. It also inspects the payoff slope above the highest strike to determine whether upside profit or downside loss is unbounded.
Where this builder stops
This is an expiration-payoff builder, not an option-pricing model. It does not estimate time value before expiration, implied volatility, Greeks, probability of profit, expected return, early exercise or assignment, dividends, interest rates, bid-ask spreads, commissions, taxes, margin requirements, collateral, or brokerage buying-power rules.
All legs are assumed to share one underlying and one expiration. The builder does not model stock legs, different expiration dates, rolls, or live option-chain data. Use the Options Profit/Loss Calculator for one standalone option, the Covered Call Calculator for stock plus a short call, or the Protective Put Calculator for stock plus a long put.
References
- Options Industry Council Profit and Loss Simulator, which describes single- and multi-leg strategy simulation.
- Options Industry Council: Short Condor (Iron Condor), a four-leg example with bounded expiration profit and loss.
- OCC equity option product specifications for standard and adjusted contract deliverables.