As can be seen from the above graphs, each option strategy produces a different payoff.

The unique feature of all option strategies, and options in general, however is that the payoff line is not straight but has a "kink" in it at the level of the option's exercise price.

It is this feature of an option which means that it is never possible to exactly replicate the return from an option simply by holding a static portfolio of underlying assets such as cash, bonds and equities. This is because these assets always rise and fall in value linearly whereas we have seen that the option value is fixed over a certain range.