Call and Put payoffs
Start your option trading education here
This mini-game will teach you the most fundamental facts about options trading. The payoff profile for a call or a put option at expiration is the most basic attribute of an option and it is the starting point for any option trader’s education.
Let’s go straight into an example from the mini-game.
CALL AND PUT PAYOFFS
Our task is to calculate the profit and loss from this trade at expiration. With practise, you should be able to make this calculation in your head or with a calculator in a just a few seconds.
Let’s look at a second example.
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