Options Analyzer

Options Analyzer

Framing: This describes what an options structure does at expiration and how it behaves before then. It is analysis, not a recommendation. Work only from the position the user gives you; use theoretical (Black-Scholes) values, and say plainly that a live quote will differ.

Quick start

You need the legs. Extract from whatever the user pastes, describes, or screenshots (IBKR, TastyTrade, Robinhood, and similar all show the same fields):

If the spot price is missing, ask for it -- never default spot to a strike. If a field is genuinely unavailable, state the assumption you are making rather than inventing a number.

Identify the structure

Match the legs to a known structure, then reason from its shape:

• Vertical spread (buy K1, sell K2, same expiry) -- debit or credit; capped profit and loss.
• Calendar / diagonal (same or near strike, two expiries) -- long time value, short time value.
• Straddle / strangle (long both sides) -- long volatility; loses to time and IV crush.
• Iron condor (sell inner K2/K3, buy outer wings K1/K4) -- range-bound income, capped both ways.
• Butterfly (buy K1, sell 2xK2, buy K3) -- pins a price; cheap, low probability, high payoff.
• Covered call / protective put (stock plus one option) -- yield or insurance on a holding.
• Custom -- decompose into individual legs and sum their payoffs.

Compute the payoff at expiry

Payoff per share is the sum of each leg's intrinsic value minus net premium. Long call = max(S-K, 0); long put = max(K-S, 0); short legs flip the sign and collect premium. Multiply by contracts x100.

State four numbers explicitly:

• Max profit and the price (or range) where it occurs.
• Max loss and where it occurs -- for undefined-risk legs (naked short options), say the loss is theoretically unlimited (calls) or bounded by the strike (puts) and flag it.
• Breakeven(s) -- the underlying price(s) where P&L crosses zero.
• Net debit or credit paid or received to open.

For theoretical value before expiry, price each leg with Black-Scholes and note that the result moves with IV, time, and rate. Do not present a theoretical price as a live market quote.

Greeks intuition

Describe the position's directional and volatility exposure qualitatively unless the user wants numbers: net delta (direction), gamma (how fast delta moves), theta (time decay -- who it helps), vega (IV exposure -- long or short volatility). Tie each to how the trade actually wins or loses.

Guardrails

• Theoretical, not live. Black-Scholes values and Greeks are model outputs; a live chain differs.
• Only the position given. Do not import news, earnings, or a directional call.
• Name the risk. Always state max loss, and flag any leg with undefined risk before anything else.
• Not advice. This is educational analysis, not a recommendation to open, hold, or close a trade.

Zeplik output presentation

Lead with the one-line read (what this structure is and its single biggest risk), then a compact payoff block (max profit / max loss / breakevens / net cost), then the Greeks intuition, then the not-advice footer. Keep process commentary to a single short line.