Options Strategy Builder
Build any options strategy and see the profit and loss at expiration instantly. Breakevens, max gain, max loss, and the full payoff curve. No signup. No card.
Payoff shown at expiration on a per contract basis (one contract = 100 shares). Calculations are estimates for educational purposes only and do not account for early assignment, commissions, dividends, or changes in implied volatility before expiration. Options involve substantial risk and are not suitable for all investors.
The Free Options Strategy Builder
The MTOptions Strategy Builder is a free options profit calculator that visualizes the profit and loss of any options strategy at expiration. Pick a strategy, enter your strikes and premiums, and the tool instantly shows your max profit, max loss, breakeven points, and the full payoff diagram. It handles single-leg trades like long calls and puts, two-leg verticals like bull call spreads, and four-leg structures like iron condors. No signup, no credit card, no download.
An options payoff diagram is the fastest way to understand a trade before you place it. The horizontal axis is the stock price at expiration. The vertical axis is your profit or loss. The green zone shows where the trade makes money, the red zone shows where it loses, and the breakeven points are where the line crosses zero. Reading that picture in two seconds is far clearer than working the math by hand.
Strategies the Builder Supports
The builder includes twelve of the most widely used options strategies, with the legs pre-filled so you can adjust strikes and premiums to match a real trade.
Long Call
Bullish. Defined risk limited to the premium, with unlimited upside as the stock rises.
Long Put
Bearish. Profits as the stock falls, with risk limited to the premium paid.
Covered Call
Income on stock you already own. Sell a call against 100 shares to collect premium.
Cash Secured Put
Sell a put backed by cash to collect premium while waiting to buy a stock lower.
Bull Call Spread
Bullish debit spread. Buy a call, sell a higher call. Defined risk and defined reward.
Bear Put Spread
Bearish debit spread. Buy a put, sell a lower put. Defined risk and defined reward.
Bull Put Spread
Bullish credit spread. Sell a put, buy a lower put. Collect premium with capped risk.
Bear Call Spread
Bearish credit spread. Sell a call, buy a higher call. Collect premium with capped risk.
Long Straddle
Buy a call and a put at the same strike. Profits from a large move either direction.
Long Strangle
Buy an out of the money call and put. Cheaper than a straddle, needs a bigger move.
Iron Condor
Sell a put spread and a call spread. Profits if the stock stays in a range. Defined risk.
Long Call Butterfly
Buy one low call, sell two middle calls, buy one high call. Peaks at the middle strike.
How Options Profit and Loss Is Calculated
The builder computes the value of every leg at each stock price, then sums them to produce the payoff curve. The core formulas are simple, and seeing them helps you trust the numbers.
Long Call
Breakeven = Strike + Premium Paid
Long Put
Breakeven = Strike − Premium Paid
Bull Call Spread
Max Loss = Net Debit
Breakeven = Lower Strike + Net Debit
Iron Condor
Max Loss = Strike Width − Net Credit
Lower Breakeven = Short Put − Net Credit
Upper Breakeven = Short Call + Net Credit
Every result in the builder is per contract, where one contract controls 100 shares. The payoff shown is the value at expiration. Your actual profit and loss before expiration will differ because of time decay and changes in implied volatility, which the expiration diagram does not model.
How to Use the Builder
- Choose a strategy from the dropdown. The legs pre-fill with sensible strikes once you enter a price.
- Enter the current stock price so the tool can suggest realistic strikes and place the “now” marker on the chart.
- Fill in the premium for each leg using the actual option prices you see in your broker or on the chain.
- Read the results. Net debit or credit, max profit, max loss, and breakevens update instantly, and the payoff curve redraws as you type.
- Add or remove legs to model any custom structure beyond the twelve presets.
Frequently Asked Questions
Is the options strategy builder free?
Yes. The builder is completely free with no signup and no credit card. Enter any strategy and see the payoff instantly.
What is a payoff diagram?
A payoff diagram, also called a profit and loss diagram, plots your profit or loss across every possible stock price at expiration. The stock price runs along the horizontal axis and your dollar profit or loss runs along the vertical axis. It is the clearest way to see the risk and reward of a trade before you place it.
Does the calculator support multi-leg strategies?
Yes. The builder handles single-leg trades, two-leg spreads, and four-leg structures like iron condors. Each leg is priced separately and combined into one payoff curve. You can also add custom legs to build any structure you want.
What is the difference between max profit and max loss?
Max profit is the most the position can make at expiration. Max loss is the most it can lose. For a long call the max loss is the premium paid while the max profit is unlimited. For a defined-risk spread, both numbers are capped, which is why traders use spreads to control risk.
Does the payoff include time decay and volatility?
The diagram shows profit and loss at expiration, when time value is gone and only intrinsic value remains. Before expiration your actual profit and loss will differ because of time decay and changes in implied volatility. The expiration payoff is the standard way to evaluate the risk and reward of a strategy.
See How We Use It
The strategy builder shows you the math. MTOptions shows you the trades. For 25 years our members have received specific options alerts built around real market catalysts. Start a free 10 day trial and see the system live.