How To Use The Convexity Options Strategy Calculator
Options trading can seem complicated at first, but understanding your potential profit, loss, and breakeven before entering a trade is one of the best ways to manage risk.
The Convexity Options Strategy Calculator was built to make options analysis simple, fast, and visual.
Our free options calculator helps traders:
- Model common options strategies
- Estimate risk and reward
- Calculate breakeven levels
- Visualise trades using payoff charts
Whether you’re learning options trading or already actively trading the markets, understanding risk before entering a position is critical.
Step 1 — Choose A Strategy
Start by selecting an options strategy from the dropdown menu.
Current supported strategies include:
- Long Call
- Long Put
- Bull Call Spread
- Bear Put Spread
The calculator automatically updates based on the strategy selected.
Step 2 — Enter The Stock Price
Enter the current stock or asset price.
This allows the calculator to model how the trade may perform across different market prices at expiry.
Step 3 — Enter Strike Prices & Premiums
Next, enter:
- Strike prices
- Option premiums
- Number of contracts
- Contract multiplier
These values determine the structure, size, and potential outcome of the trade.
Step 4 — Click Calculate
The calculator will instantly display:
- Maximum profit
- Maximum loss
- Breakeven price
- Net debit or credit
- Visual payoff chart
This makes it easy to quickly analyse an options trade before entering the market.
Step 5 — Read The Payoff Chart
The payoff chart shows how your options strategy performs at expiry across different price levels.
This helps traders better understand:
- Potential profit
- Potential loss
- Risk exposure
- Reward potential
before placing a trade.
Why Risk Management Matters
Many beginner traders focus only on potential profit.
Professional traders focus on:
- Managing downside risk
- Position sizing
- Protecting capital
- Structuring high-quality trades
Understanding risk before entering a position is one of the most important parts of long-term trading success.
Built For Simplicity
Convexity was designed to provide:
- Clean tools
- Fast calculations
- Visual trade analysis
- Practical risk management
without unnecessary complexity.
The goal is simple:
Help traders better understand options risk before entering a trade.
Stay tuned for updates and more free trading tools at: