Payoff Builder
Every option position has a shape. Pick a template or build your own, then drag the market inputs and watch the P/L curve, breakevens and max-loss redraw instantly. Premiums are priced with Black-Scholes from your spot, IV and days-to-expiry.
Legs
How to read this
The curve
The green line is your position's profit or loss at expiry for every possible closing price of the underlying. Above the dashed zero line you make money; below it you lose.
Breakevens
The amber lines mark where the curve crosses zero — the underlying prices at which you neither make nor lose. A wider gap between breakevens means a larger safe zone.
Credit vs debit
A credit means you were paid net premium to open (you want options to decay). A debit means you paid (you need a move to profit).
Unlimited risk
A naked short option shows "Unlimited" loss. That's not a bug — a sold call can lose without bound as the underlying rises. Defined-risk structures (spreads, condors) cap it.
About the Options Payoff Builder
The Payoff Builder is an interactive profit-and-loss diagram for Indian index options. You add option legs — buy or sell calls and puts at any strike — and the chart instantly shows the shape of your position at expiry: where you make money, where you lose it, your exact breakeven points, and your maximum profit and maximum loss. Premiums auto-price from a Black-Scholes model using the spot, days-to-expiry and implied volatility you set, so the payoff reflects a realistic entry cost.
What you can do
- Pick the underlying (NIFTY, lot size 65, or BANKNIFTY, lot size 30) and set spot, days-to-expiry and IV.
- Add legs manually or load a ready template (long call, straddle, iron condor, bull call spread, and more).
- Read the live payoff curve: green above breakeven, red below, with max-profit / max-loss and breakeven markers.
- Every leg is priced per Indian index-option contract, so the P&L is in real rupees for one or more lots.
Worked example — a long NIFTY call
Buy one lot of the NIFTY 24000 CE at a ₹150 premium. One lot is 65 units, so you pay ₹150 × 65 = ₹9,750 — and that premium is your entire maximum loss, no matter how far NIFTY falls. Your breakeven at expiry is 24000 + 150 = 24150. Above 24150 the position is profitable and the upside is theoretically unlimited; the payoff diagram shows the classic flat-then-rising "hockey stick" with the kink at the 24000 strike.
Frequently asked
What is an options payoff diagram?
A payoff diagram plots your profit or loss against the underlying price at expiry. It makes the risk of a strategy visual — you can see the maximum loss, maximum profit and the breakeven price at a glance instead of computing them by hand.
How is maximum loss calculated for a bought option?
For a long (bought) call or put, the maximum loss is simply the premium paid times the lot size. Buying a NIFTY option at ₹150 with a lot size of 65 caps your loss at ₹9,750 per lot.
Does the builder use real NIFTY lot sizes?
Yes. NIFTY uses a lot size of 65 and BANKNIFTY 30, so the rupee P&L reflects one real contract per lot on the NSE.
Learn the concepts
Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss; SEBI studies show the large majority of individual F&O traders lose money. Tapetide is not a SEBI-registered research analyst or investment adviser.