Options basics: calls, puts and payoff at expiry
What calls and puts are, how their profit and loss work at expiry, and the risks that catch new traders off guard.
Options
Options give the right, not the obligation, to buy or sell at a set price. They carry leverage, time decay and the possibility of losing the whole premium.
Live chart
What to learn
- Calls and puts
- Payoff at expiry
- Implied volatility
- Assignment and early exercise
Tools for options
Options payoff at expiry
Profit and loss for long or short calls and puts across a range of prices.
Risk/reward and break-even
See your reward multiple and the win rate you need to break even.
Guides
Education only. All Markets Desk publishes education and general information, not investment, tax or legal advice. Trading involves risk of loss, including loss of everything you put in. Read the disclaimer and risk disclosure.