Options Portfolio Parity and P&L Visualizer

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Hockey Stick Diagrams
Key insight: Option buyers (long) have limited risk (the premium paid) and unlimited profit potential, while option sellers (short) have limited profit (the premium received) and unlimited risk. These asymmetric payoffs are what give the diagrams their characteristic "hockey-stick" shape.

So why would anyone sell options? Why not just always buy options? What do you think:)

Long Call

Buyer — limited risk, unlimited profit

Long Put

Buyer — limited risk, unlimited profit

Short Call

Seller — limited profit, unlimited risk

Short Put

Seller — limited profit, unlimited risk

Note: "Unlimited" is used loosely for puts — since the underlying price cannot fall below zero, a long put's maximum profit and a short put's maximum loss are both capped at the strike price.

Add Option Position

Premium / Price is optional — omit it to plot the Parity graph only. The P&L graph requires all positions to have a premium.