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Trading and options · Matched-strike payoff at expiration

Straddle Payoff Calculator

Created by Arunangshu DasReviewed

Calculate long or short straddle profit, loss and break-even at expiration.

Enter separate call and put premiums and one shared strike.

Straddle at expiration

Use the same major currency for all amounts. Enter decimals with a period and no grouping separators.

Formatting only. The calculator performs no currency conversion.

Enter each premium per unit and fees for the entire position. Enter zero if no fees apply.

Expiration payoff and net profit or loss

Enter your option assumptions or load the worked example.

The model values a matched call and put at expiration. The downside-price branch ends at zero. The rising-price branch is unbounded.

Learn to calculate a straddle payoff

Work through both sides and see when the lower break-even is attainable.

Read the straddle payoff guide

Formula and methodology

Combined intrinsic value = |expiration price − strike| × underlying units per leg.

Multiply each leg’s intrinsic value and premium by units per leg. Call intrinsic value is the positive part of expiration price minus strike. Put intrinsic value is the positive part of strike minus expiration price. A long receives intrinsic value and pays premiums. A short owes intrinsic value and receives premiums. Sum the signed cash flows and deduct total fees once.

Definitions

A straddle pairs a call and put with the same strike, expiry and underlying. Both legs are bought in a long straddle or sold in a short straddle. Use the same contract count, multiplier and quotation basis for both legs.

Verified worked examples

With one 100-unit pair at strike 50, call premium 3, put premium 2 and total fees 10, a price of 44 gives the put 600 of intrinsic value. The long earns 90 and the short loses 110. The long breaks even at 44.90 and 55.10. The short breaks even at 45.10 and 54.90.

Interpretation

The long’s worst outcome and short’s best occur at strike. At an underlying price of zero, put intrinsic value reaches strike times units. Above strike the call branch continues indefinitely in the model, with unbounded long gain or short loss.

Inputs and interpretation

Choose long or short, then confirm the same underlying, expiry, quote basis and currency. Enter the shared strike, expiration price, each per-unit premium, matched contract count, multiplier and explicit total fees.

Assumptions and limitations

One matched call and put held to one expiration checkpoint with a nonnegative underlying price. There are no rates, compounding or calendar calculations. Market selection changes currency formatting only.

Supported domain and common mistakes

Monetary inputs support up to 1 trillion and 12 decimal places, with a strictly positive strike. Contract count and multiplier each support 1 through 1 million. A theoretical upper root may exceed the input ceiling. Repeating prices are labeled approximate.

Check whether premiums are per unit or per contract. Enter one fee total for both legs, and distinguish a lower break-even of zero from a lower candidate below zero.

Frequently asked questions

What is the payoff of a long straddle at expiration?
Gross payoff equals the absolute difference between the expiration price and strike multiplied by units per leg. Deduct both premiums and the total fees for net profit or loss.
Can a straddle have only one break-even price?
Yes. A zero net opening debit or credit makes strike the only root. A positive debit or retained credit larger than strike per unit leaves only the upper root.
Why is the lower break-even missing?
The formula implies a negative underlying price, which is outside the modeled domain. If the candidate equals zero exactly, it is a valid root.
What if fees use up all short-straddle premium?
Net opening cash is zero and the only break-even is at strike. If fees exceed premium, even the best expiration outcome is a loss.
Why can a short straddle have unbounded loss?
Above strike the short call liability increases as the underlying rises. The short put has zero intrinsic value in that region.
Does a larger multiplier change break-even?
It changes the fixed fee per unit and the total money at risk. With no fees and the same per-unit premiums, the break-even prices stay the same.

Sources and educational scope

Educational expiration payoff only. The model excludes pre-expiry valuation, volatility forecasts, exercise, assignment, settlement, margin, financing, taxes and FX. It does not calculate the chance of reaching a break-even.

Reviewed . AI-assisted content under operator editorial responsibility. No independent expert financial review is claimed.

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