Long Straddle
Computes the cost and breakevens of a long straddle: buying a call and a put at the same strike and expiry. It's the classic volatility bet — you profit if the asset moves a lot in either direction, regardless of which way, and lose at most the premium paid if it stays put. The tool sums the two premiums and works out how far from the strike the asset must move to break even. Enter the strike and the call and put premiums.
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Long Straddle
Computes the cost and breakevens of a long straddle: buying a call and a put at the same strike and expiry. It's the classic volatility bet — you profit if the asset moves a lot in either direction, regardless of which way, and lose at most the premium paid if it stays put. The tool sums the two premiums and works out how far from the strike the asset must move to break even. Enter the strike and the call and put premiums.
Profiting from the move, not the direction
Some days you know something big is coming, an earnings report, a rate decision, an election result, but you have no idea which way the market will react. The straddle is the answer to that. You buy a call and a put at the same strike, and from there you just root for the asset to move a lot, whether up or down.
The cost is the sum of the two premiums, and it's also your maximum loss, which happens if the asset stays put and both options expire worthless. To turn a profit, the move has to be big enough to cover that cost. That's why a straddle tends to get expensive right before events, when implied volatility is high and premiums swell.
Enter the strike and the call and put premiums. The tool sums the cost and works out the two breakeven points, the strike minus the cost and the strike plus the cost. Outside that band the position profits; inside it, it loses. It's the quick read on how far the asset must move for the bet to pay off.
Related Tools
Long Strangle
Computes the cost and breakevens of a long strangle: buying a lower-strike put and a higher-strike call, both out of the money. It's a cheaper volatility bet than the straddle, because out-of-the-money premiums cost less — in exchange, the asset has to move further to turn a profit. The tool sums the premiums and works out the two breakeven points. Enter the put and call strikes and their premiums.
Long Call Condor
Computes the outcome of a long call condor: buy one low-strike call, sell two middle-strike calls and buy one high-strike call. It's a cousin of the butterfly with a wider profit zone: you bet the asset will stay within a range rather than land exactly on a point. The tool returns the net cost, the maximum profit, the maximum loss and the two breakeven points. Enter the four strikes and the four call premiums.
Long Call Butterfly Spread
Computes the outcome of a long call butterfly: buy one low-strike call, sell two middle-strike calls and buy one high-strike call, with equally spaced strikes. It's a bet that the asset will sit near the middle strike at expiry. The tool returns the net cost (debit), the maximum profit, the maximum loss (capped at the debit) and the two breakeven points. Enter the three strikes and the three call premiums.
Iron Butterfly
Computes the outcome of an iron butterfly: selling a call and a put at the same central strike (the body) and buying a further-out call and put (the wings), collecting a net credit. It's a strong bet that the asset will finish right at the central strike, with a bigger credit than an iron condor but a narrower profit range. The tool returns the maximum profit, the maximum loss and the two breakeven points. Enter the central strike, the wing width and the credit received.
Implied Volatility (Black-Scholes)
Computes the implied volatility of a European call option by inverting the Black-Scholes formula via bisection: given the market price, it finds the volatility the model would need to reach it. It's the volatility the market is actually pricing in, the number behind the volatility smile and the VIX. Unlike the other Greeks, it has no closed form and requires a numerical solution. Enter the spot price, the strike, the interest rate, the term and the market price of the call.
Digital Call (Cash-or-Nothing)
Computes the price of a cash-or-nothing digital call option: it pays a fixed amount if the asset finishes above the strike, and nothing otherwise. The price is the discounted payout multiplied by the risk-neutral probability of finishing in the money, Q·e^(−rT)·N(d2). It's the purest form of a binary bet and the building block of many exotic structures. Enter the spot price, the strike, the interest rate, the term, the volatility and the payout.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.