8. The payoff chart
Breakevens, chance of profit and Greeks, with sliders to try another IV or date. · 0:43
Transcript
The payoff chart shows what your strategy would make or lose at expiry, across a whole range of prices.
Above it are the maximum profit and loss, the breakevens, and the chance of profit.
The dashed line is the value today. Drag the IV slider to see what a jump in volatility would do to it.
And drag the days slider to see how time decay reshapes the curve, as expiry gets closer.
Underneath are the Greeks for the whole position: delta, gamma, theta and vega.
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