Derivatives Simulator

Short sell stock

intermediatebearish

Strategy parameters

Greeks (current)

Delta
-100.000
Gamma
0.000
Theta
0.000
Vega
0.000
Rho
0.000

Payoff diagram

P&L at expiryP&L today (theoretical)Current spot

Key metrics

Net cost
-$10,000.00
Credit (received)
Max profit
$10,000.00
Max loss
Unlimited
Breakevens
$100.00

Scenarios at expiry

MoveSpotP&L at expiry% of cost
-20%$80.00$2,000.0020.0%
-10%$90.00$1,000.0010.0%
-5%$95.00$500.005.0%
+0%$100.00$0.000.0%
+5%$105.00-$500.00-5.0%
+10%$110.00-$1,000.00-10.0%
+20%$120.00-$2,000.00-20.0%

Mechanics & risks

How it works

You borrow shares and sell them now, hoping to buy them back cheaper later. You profit if the stock falls and lose if it rises.

When to use

You believe the stock is overvalued and will decline.

Risks
  • Loss is **unlimited** — there is no upper bound on the share price.
  • Margin call risk if the stock rallies; you must post additional collateral.
  • Borrow fees and dividends owed to the lender.