Options mechanics · decision tool
See what the option needs to do to pay.
A single expiry price can hide the trade-off. Enter the quoted terms and scan the outcome across a range of underlying prices before comparing venues or committing collateral.
Build a scenario
Quoted option terms
Enter non-negative prices and costs, plus a positive position size.
This models the option leg at expiry. Seller collateral, margin, early exit value, and the underlying asset leg are not included.
Expiry scenario matrix
Option-leg outcomes
Break-even
$0.00
Max loss
$0.00
Max profit
$0.00
Position cost
$0.00
Adjust the terms to see the expiry range.
| Price at expiry | Intrinsic | Costs | Net P&L | Return | Outcome |
|---|---|---|---|---|---|
| Adjust the inputs to calculate scenarios. | |||||
Return is measured against premium plus entered costs for a long position. Seller collateral and margin are not modeled.
How to use the matrix
Start with the exact strike and premium from the quote you are evaluating. Scan the rows to find the break-even price, the loss if the underlying finishes against the position, and the amount of movement needed before the premium is recovered.
What it does not tell you
This is expiry-only option-leg math. It does not price time value, implied volatility, bid-ask spread, early exit value, liquidation, seller collateral, or the value of any underlying asset held alongside the option. Verify the venue’s live terms before acting.
Onchain options need a second check
After the payoff passes your first filter, compare settlement asset, exercise rules, oracle or mark-price design, collateral requirements, liquidity, fees, gas, and whether a position can be closed before expiry. A favorable payoff table does not guarantee an executable trade.