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Methodology

How OptCurve calculates options payoff

A transparent explanation of the assumptions and limitations behind every expiration scenario shown in the calculator. Reviewed by the OptCurve Editorial Team · Last reviewed September 2026.

What the calculator models

OptCurve models profit or loss at expiration from the underlying price, strike, option type, premium, position side, contract count, and contract multiplier. It is an educational scenario tool, not an order-entry or pricing system.

Expiration equations

For a call, intrinsic value is max(underlying price − strike, 0). For a put, intrinsic value is max(strike − underlying price, 0). A bought option subtracts its premium; a sold option adds its premium. The result is multiplied by contract size and the global multiplier.

What is not included

The model does not simulate time value before expiration, implied volatility changes, Greeks, interest rates, dividends, early exercise, assignment, bid-ask spreads, fees, taxes, liquidity, or slippage. Real outcomes can differ materially.

How to use results responsibly

Change one assumption at a time, inspect the full curve, compare maximum loss with account size, and independently verify contract specifications. Never treat a chart as a recommendation or guarantee.

Explore the free OptCurve calculator

Model expiration payoff, compare up to four strategies, and identify breakeven levels using your own assumptions.

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