I have difficulties picturing how seagulls should look like. Is there an easy way to think about their payoff graphs?

For example, how does this look like - buy a 35-delta put, sell a 25-delta put, and sell a 35-delta call.

Also, I can’t see why the text would say “provides downside protection between the two put strike prices and upside potential to the call strike price” for the seagull mentioned in (1) above.

Sort of expected someone would do that haha… But seriously, any help on the above? Thank you. I have searched payoff graphs for seagull using google image but haven’t been able to find one that fits the above desciption.

Thanks for helping out Pierre. Can you please explain how you arrived at this graph. I tried applying what S2000magician mentioned in this post below and wasn’t able to get it.

Basically you are (1) Short put - low strike price (2) Long put - medium strike price (3) Short call - high strike price.

The graphs corresponding to the above are (1) / (2) \ (3) \

Could I ask one more thing, why does the text say “upside potential to the call strike price”. The payoff graph is clearly flat before the call strike price so why is there upside potential?

Pierre, think I figured it out. You need to add a long stock to the seagull to see what effect it has on the portfolio. So before the call strike price, you portfolio will increase in value since the payoff graph is flat then. But after the call strike price, the seagull is \ therefore it would offset your long stock position which is /