What does this "On Target" means Blue dotted line?

On Target means days to expire.

Currently 7 which means today is the target date and Blue line is today's theoretical value.

If days to expire changes to 6, then it will calculate tomorrow's value.

Days to expire is 0 means it is the value on expiry day, which is same as red line.

You can adjust Days to expire to see blue line changing.

The Yellow dotted line in the payoff graph is the current spot price.

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