What formula does the analyzer use for straddle breakevens?

For both long and short straddles, the tool calculates two breakeven points: Strike Price plus Total Premium (upper breakeven) and Strike Price minus Total Premium (lower breakeven). For example, a straddle with a $50 strike and $8 total premium has breakevens at $42 and $58.

How is max gain calculated for a debit spread?

Max Gain for a debit spread equals the Difference in Strike Prices minus the Net Debit Paid. For example, buying a 50 call for $5 and selling a 60 call for $2 gives a net debit of $3 and a max gain of $7 per share ($700 per contract), which occurs when the stock is at or above the higher strike at expiration.

How does the tool calculate covered call breakevens?

For a covered call, the breakeven equals Stock Cost Basis minus Premium Received. For example, if you bought stock at $50 and sold a call for $3, your breakeven is $47. The premium received lowers your effective cost basis.

What is the max loss on a credit spread?

The max loss on a credit spread equals the Difference in Strike Prices minus the Net Credit Received, multiplied by 100 for one contract. For a call credit spread selling the 50 call for $5 and buying the 60 call for $2, the net credit is $3 and max loss is $7 per share ($700 per contract).

What is the breakeven for a long call option?

The breakeven for a long call is Strike Price plus Premium Paid. The stock must rise above this price for the trade to be profitable at expiration. For example, buying a $50 call for $3 has a breakeven of $53.

What is the breakeven for a long put option?

The breakeven for a long put is Strike Price minus Premium Paid. The stock must fall below this price for profit at expiration. For a $50 put purchased for $4, the breakeven is $46.

What is the max gain on a covered call?

Max gain on a covered call is calculated as Strike Price minus Stock Cost Basis plus Premium Received. It occurs when the stock is at or above the strike price at expiration. For example, stock at $48, sell 50 call for $3: max gain = ($50 - $48 + $3) = $5 per share.

What is the difference between a straddle and a strangle?

A straddle uses the same strike price for both the call and put. A strangle uses different strike prices — typically an out-of-the-money call (higher strike) and an out-of-the-money put (lower strike). Strangles are cheaper but need a larger move to profit. The breakeven formulas differ: straddle uses one strike plus or minus total premium, while strangle uses each respective strike plus or minus total premium.

How does the protective put breakeven work?

The breakeven for a protective put (married put) is Stock Cost Basis plus Premium Paid. You need the stock to rise enough to cover both the original purchase and the insurance cost. Max loss is limited to Stock Cost minus Strike Price plus Premium Paid.

What is the max gain on a short put?

The max gain on a short (naked) put is the premium received, multiplied by 100 for one contract. This occurs when the stock stays at or above the strike price at expiration. The max loss is the strike price minus the premium, multiplied by 100 (the stock can theoretically fall to zero).

Series 7 Tool · Free · Updated 2026

Options Strategy Analyzer

Name: Options Strategy Analyzer
Author: 2DollarTests

Build your trade below. We'll identify the strategy, calculate breakevens, and map your risk profile with a live P&L chart.

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📈 Bullish Strategies

Long Call: BE = Strike + Premium. Max loss = premium paid.
Short Put: BE = Strike − Premium. Max gain = premium received.
Call Debit Spread: BE = Lower Strike + Net Debit. Max gain = spread width − debit.
Put Credit Spread: BE = Higher Strike − Net Credit. Max gain = net credit.
Covered Call: BE = Stock Cost − Premium. Max gain = Strike − Stock + Premium.
Protective Put: BE = Stock Cost + Premium. Max loss = Stock − Strike + Premium.

📉 Bearish Strategies

Long Put: BE = Strike − Premium. Max gain = (Strike − Premium) × 100.
Short Call: BE = Strike + Premium. Max loss = unlimited.
Put Debit Spread: BE = Higher Strike − Net Debit. Max gain = spread width − debit.
Call Credit Spread: BE = Lower Strike + Net Credit. Max gain = net credit.

⚡ Volatility & Stability

Long Straddle: BEs = Strike ± Total Premium. Profit on big moves either way.
Short Straddle: Same BEs. Max gain = total premium; loss unlimited.
Long Strangle: Upper BE = Call Strike + Total Prem; Lower BE = Put Strike − Total Prem.
Short Strangle: Same BEs. Max gain = total premium; loss unlimited.

💡 Exam shortcut — "Debit = you pay. Credit = you receive." A debit spread's max loss is the net debit. A credit spread's max gain is the net credit. The other side is always: spread width minus that amount.

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About this tool: Interactive options strategy analyzer for the FINRA Series 7 exam, updated for 2026. Auto-detects 14 strategies: Long Call, Short Call, Long Put, Short Put, Call Debit Spread, Call Credit Spread, Put Debit Spread, Put Credit Spread, Long Straddle, Short Straddle, Long Strangle, Short Strangle, Covered Call, and Protective Put. Calculates breakevens, max gain, max loss, and generates a real-time P&L chart with dynamic green/red gradient. Published by 2DollarTests.

Options Strategy Analyzer Summary

This interactive tool analyzes options strategies for the Series 7 exam, updated for 2026. It auto-detects 14 strategies from the legs entered and calculates breakevens, max gain, and max loss using standard options formulas. Single leg strategies: Long Call breakeven equals strike plus premium with unlimited max gain and max loss equal to premium paid, Short Call breakeven equals strike plus premium with max gain equal to premium received and unlimited max loss, Long Put breakeven equals strike minus premium with max gain equal to strike minus premium times 100 and max loss equal to premium paid, Short Put breakeven equals strike minus premium with max gain equal to premium received and max loss equal to strike minus premium times 100. Spread strategies: Call Debit Spread breakeven equals lower strike plus net debit with max gain equal to difference in strikes minus net debit and max loss equal to net debit, Call Credit Spread breakeven equals lower strike plus net credit with max gain equal to net credit and max loss equal to difference in strikes minus net credit, Put Debit Spread breakeven equals higher strike minus net debit with max gain equal to difference in strikes minus net debit and max loss equal to net debit, Put Credit Spread breakeven equals higher strike minus net credit with max gain equal to net credit and max loss equal to difference in strikes minus net credit. Volatility strategies: Long Straddle has two breakevens at strike plus total premium and strike minus total premium with unlimited max gain and max loss equal to total premium, Short Straddle same breakevens with max gain equal to total premium and unlimited max loss, Long Strangle upper breakeven equals call strike plus total premium and lower breakeven equals put strike minus total premium with unlimited max gain and max loss equal to total premium, Short Strangle same breakevens with max gain equal to total premium and unlimited max loss. Hedged strategies: Covered Call breakeven equals stock cost minus premium received with max gain equal to strike minus stock cost plus premium and max loss equal to stock cost minus premium times 100, Protective Put breakeven equals stock cost plus premium paid with unlimited max gain and max loss equal to stock cost minus strike plus premium times 100. The tool generates a real-time P&L chart with dynamic green above zero and red below zero gradient coloring. Published by 2DollarTests.

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Options Strategy Analyzer Summary