Would be nice to have a payoff curve

Quant Trading Strategies & Ideas
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Course Name: Options Trading Strategies In Python: Intermediate, Section No: 7, Unit No: 11, Unit type: Document



A complete analysis of an options strategy should have a payoff diagram. A payoff diagram is worth thousands of words and helps me learn better.



Does anyone know any good online tool to analyze options strategies? Such as something that allows us to combine different call/put options with different parameters (strike, date to expiry, premium, long/short, …etc.) to simulate strategies such as credit/debit spread, condor/butterfly, strangle/straddle, or our custom strategy, and allows us to look at the combined payoff diagram. Thanks

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Hi,



You are right when you say you can learn better when there is a payoff diagram. In fact, we had a section in our course, Options Trading Strategies in Python: Basic course where you could obtain the payoff diagrams for strategies such as bull call and bull put spread, as well as protective put, and protective call strategies. You will have to tweak it quite a bit to obtain the payoff diagrams for the strategies you have mentioned.

Meanwhile, there are online resources too, such as this one here, but I am not sure about the quality.



Hope this helps.

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Hi Rekhit,

The online resource that you gave is good enough for a quick check.

Thanks