Compare expiration payoff bounds, not trade quality
This calculator uses reward / risk: maximum profit divided by maximum loss. For example, a hypothetical $5-wide bull call spread bought for $2 per share has a $200 maximum loss and $300 maximum profit per 100-share spread, before costs. Its ratio is 1.5:1. That ratio gives no information about how likely either outcome is.
One payoff method for different quantities
For each leg, expiry P&L equals direction × (intrinsic value − entered premium) × 100 × quantity. Direction is +1 for a long option and −1 for a short. Call intrinsic value is max(S − K, 0); put intrinsic value is max(K − S, 0).
The combined payoff is linear between strikes. Checking S = 0 and every strike locates finite extrema; the sum of signed call units determines the slope above the highest strike. A negative right-hand slope means unlimited loss. Selling two calls against one purchased call is not a fully hedged vertical spread, even if the strikes look like a standard template.
How to use the contract picker
- Enter a ticker and optional expiration, contract-type and strike filters. Press Load. Editing filters or loading another snapshot clears the previous legs to avoid mixing data.
- Choose one of seven templates or add individual option legs. The template supplies only buy/sell directions and option types; check that your selected strikes form the intended strategy.
- Expand each leg and select its exact contract. The daily close is copied if available. Missing close stays blank; replace it with a verified fill or an explicit hypothetical premium.
- Review all quantities, premiums and the shared expiration. No incomplete leg is silently dropped. A zero premium is allowed as an explicit input, but does not prove a free executable trade.
Data coverage and unsupported positions
The chain request returns at most 250 contracts sorted by strike. The expiry selector is derived from at most 1,000 contract records; neither is a complete chain guarantee. Only supported standard 100-share contracts are retained. The underlying reference quote and option snapshot may differ in timing. There is no automatic refresh or order execution.
This page has no stock legs, so it cannot represent a covered call or protective put. Use the options profit calculator for its explicit stock-leg model. Mixed expirations, adjusted deliverables, transaction costs, taxes, early exercise, assignment, dividends and margin are outside this calculation.
Why probability and expected value are absent
Delta measures sensitivity to the underlying price. Net delta cannot supply a probability distribution for a multi-leg payoff. Probability of finishing in the money also differs from probability of profit after premium and costs. Expected P&L requires weighting the full range of outcomes, not just multiplying the maximum gain and maximum loss by a guessed win rate. These outputs are therefore not shown.