Visualize profit/loss for popular options strategies
Sell OTM put spread + sell OTM call spread. Profits from low volatility. Max profit = net credit. Max loss occurs if price moves beyond either spread.
Buy one option, sell another at different strike. Limited risk, limited reward. Directional play with defined risk.
Buy ATM call + buy ATM put. Profits from large moves in either direction. Max loss = total premium paid. Benefits from high volatility.
Buy OTM call + buy OTM put. Cheaper than straddle, needs larger move to profit. Max loss = total premium paid.
Buy 1 ITM, sell 2 ATM, buy 1 OTM. Profits if price stays near middle strike. Low cost, limited profit.