See the payoff before you trade. Write the plan before you enter.
The two tools from Options From Zero — Module 5 and Module 10, made interactive. Move the price, see exactly what you make or lose, then turn it into a written plan with your risk decided in advance.
Default example: Module 5 — $100 call at $2.40Risk rule: 1–2% per tradeEducational only — no tips, no signals
Payoff calculator
Profit and loss at expiry for a single option. One contract controls 100 shares — so a $2.40 premium costs $240, not $2.40.
Module 5
Buying: your most you can lose is the premium you pay.
Cost for 1 contract: $240
This is the “what if?” slider. Drag it and watch the payoff below.
P/L at $105
+$260
at expiry
Breakeven
$102.40
strike + premium
Max loss
−$240
premium paid
Max profit
Unlimited
no cap on a long call
Payoff at expiry Breakeven● Price you selected
Payoff table — like Module 5, but live
Stock at expiry
Per share
Total P/L
Check it against Module 5: long $100 call at $2.40 — at $95 the call expires worthless (−$240), breakeven is $102.40, and at $105 you make ($105 − $100 − $2.40) × 100 = +$260.
Your written trade plan
Module 10 in fill-in form. Complete it before you place the trade. If a box is empty, you don’t have a plan yet — you have a hunch.
Module 10
1 The setup
2 Why this trade?
3 Risk — decided now, not mid-trade
1.0%
Your risk maths, from the setup above
Max loss on this plan
−$240
premium × 100 × contracts
That’s this much of your account
2.4%
of account size
Contracts that fit your risk rule
0
at 1.0% risk
Check your size
For short (sold) options, max loss can be far larger than the premium — for a short call it’s unlimited, and a short put needs the full strike × 100 set aside (e.g. $30 strike = $3,000 per contract). The calculator above shows the true figure for your position.
4 Exit rules — write them before emotion does
5 Pre-trade checklist
I can state my max loss in dollars — not just “the premium.”
I know my breakeven and how far price must move, by when.
Size fits my 1–2% rule — see the risk panel above.
My exit rules are written — target, stop, and time exit.
I’ve checked expiry & earnings dates — no surprise event inside the trade.
This is a plan, not a tip — my own thesis, my own decision.
6 After the trade — the review is the lesson
Print or download to keep your copy — this page doesn’t store it.