How to Use the Options Strategy Simulator

This options strategy simulator allows you to build, view, and analyze any combination of call and put contracts before executing them in the market. Whether you’re planning a simple covered call, a vertical spread, or a complex structure like a condor or a butterfly, the payoff chart updates in real time with every change.

How it works

Add the legs of your strategy by selecting type (call or put), direction (buy or sell), strike price, premium paid or received, and number of contracts. The tool immediately calculates:

• Maximum profit and maximum loss — with automatic detection of unlimited payoffs (e.g., for net long call or uncovered short put positions)
• Break-even — the exact price thresholds of the underlying asset at which the strategy breaks even, calculated with mathematical precision rather than by approximation
• Net debit or credit — the total initial outlay or cash inflow of the position
• Delta at expiration — the sensitivity of P&L to movements in the underlying asset’s price at every point on the chart

Supported strategies

The tool supports any combination of European and American vanilla options at expiration, including:

• long and short calls and puts
• vertical spreads (bull call spread, bear put spread)
• horizontal and diagonal spreads
• straddles and strangles
• butterflies and condors
• ratio spreads
• synthetic strategies

How to Read the Chart

The horizontal axis represents the price of the underlying asset at expiration, while the vertical axis indicates the profit or loss in currency. The solid blue line shows the strategy’s overall payoff; the dashed lines highlight the contribution of each individual component, while the animated green dots indicate breakeven levels. You can drag the chart to explore different price scenarios, use the mouse wheel to zoom in or out, and hover over the curve to view P&L and delta point by point.

Who it’s for

The simulator is designed for retail traders who trade options on stocks, indices (such as the FTSE MIB, S&P 500, DAX), or ETFs and who want to evaluate a strategy’s risk-return profile before execution, without relying on brokerage platforms or paid software.

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Notes on use: The tool calculates the payoff at expiration and does not account for time value (theta), implied volatility, or intraday price adjustments. For pre-expiration analysis using the Black-Scholes model, it is advisable to use a dedicated pricing tool in conjunction with this one.