The two curves
The Playground's payoff chart shows two lines against a range of possible spot prices:
- Solid green — P&L at expiration. This is the clean, kinked line most textbooks show. Options that finish out-of-the-money go to zero; in-the-money options settle at intrinsic value.
- Dotted blue — P&L today. This is smoother because it includes the remaining time value in the options. As expiry approaches, this curve morphs into the green one.
The four summary numbers
Every payoff card shows four metrics up top. Here's what each means:
- Net debit / credit — dollars paid (debit) or received (credit) to open the position. Long premium = debit. Short premium = credit.
- Max profit— the highest point the green curve reaches. “Unlimited” means the tail keeps rising — typical for long calls (up) or long puts (down).
- Max loss— the lowest point. “Unlimited” means naked short exposure — a naked short call, for instance, loses more every dollar the stock rises.
- Breakeven(s) — the spot prices where the green line crosses zero. Between two breakevens, you make money at expiry; outside them, you lose. Simple positions have one breakeven; multi-leg strategies often have two.
How to use the two curves
Read them together. The gap between blue and green shows the remaining time valueat each spot. If the gap is huge, you have room for the position to move — but you're also paying for it (theta). If the gap is small, most of the time value is gone and the trade is close to its terminal state.
Vertical reference lines
- Dashed vertical — current spot price. Where you are right now.
- Dotted vertical(s) — breakevens. Where you transition from losing to winning at expiry.
Common gotchas
The chart is a snapshot with today's IV. If IV changes, both curves shift — that's Vega at work. The Time Machine lets you simulate that shift and see how your position responds.
Also: the Playground automatically widens the spot range for high-IV positions so both breakevens are visible. If you don't see a breakeven for a straddle, that's a sign the IV is high enough that the breakeven falls outside the default view — the app handles this for you.