Put Option Graph Calculator

Interactive put option charts with profit/loss curves, Greeks analysis, and comprehensive trading strategies. Visualize put option behavior under different market conditions.

Put Option Parameters

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Put Option Charts

Option Greeks

Put Option Price

$5.00

Delta

-0.50

Gamma

0.02

Theta

-0.15

Vega

0.12

Rho

-0.08

Key Metrics

Break-even Price: $95.00
Max Loss: $5.00
Max Profit: $95.00
Probability ITM: 50%

Understanding Put Option Graphs

Profit/Loss Chart

The profit/loss chart shows the potential gains and losses from buying a put option at different stock prices. The break-even point occurs when the stock price equals the strike price minus the option premium.

Price Sensitivity

Put option prices increase as the underlying stock price decreases. The relationship is captured by Delta, which shows how much the option price changes for a $1 change in stock price.

Greeks Analysis

Delta measures price sensitivity, Gamma measures Delta's rate of change, Theta shows time decay, Vega measures volatility sensitivity, and Rho shows interest rate sensitivity.

Time Decay

Put options lose value over time due to Theta decay. The rate of decay accelerates as expiration approaches, especially for at-the-money options.

Volatility Impact

Higher volatility increases put option prices because there's a greater probability of the option ending in-the-money. Vega measures this sensitivity.

Trading Strategies

Put options can be used for speculation (betting on price declines), hedging (protecting against downside), or income generation (selling puts). Each strategy has different risk/reward profiles.

Put Option Trading Strategies

Protective Put

Buy a put option to protect against downside risk in a stock position. This creates a floor for potential losses while maintaining unlimited upside potential.

Cash Secured Put

Sell a put option with cash reserves to cover the potential obligation to buy stock. This strategy generates income while potentially acquiring stock at a discount.

Put Spread

Buy a put option at one strike price and sell a put option at a lower strike price. This limits both potential profit and loss while reducing the cost of the position.

Long Put

Buy a put option to profit from a decline in the underlying stock price. Maximum loss is the premium paid, while maximum profit occurs if the stock goes to zero.

Naked Put

Sell a put option without holding the underlying stock. This strategy has unlimited risk and should only be used by experienced traders with proper risk management.

Risk Management

Always set stop-losses and position size limits when trading put options. Consider using spreads to limit risk and avoid naked short positions unless you have significant experience.