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Explain the “Payoff Profile” of a Long Call Option

Max Loss $=$ Premium. Unlimited Profit. Price $uparrow$ Strike $rightarrow$ Profit 72.
Greeks.Live18.11.25

Explain the “Payoff Profile” of a Long Call Option.

The payoff profile of a long Call option is a diagram showing the profit or loss at various prices of the underlying asset at expiration. The buyer pays the premium (max loss).

If the asset price is below the strike, the option expires worthless. If the price is above the strike plus premium, the profit is theoretically unlimited, creating a hockey-stick shape.

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