Option Spread Calculator
Use this free option spread calculator to model any vertical spread before you trade it. Select your strategy, enter your strikes and premiums, and instantly see max profit, max loss, breakeven price, and a full P&L diagram.
How to use the option spread calculator
Select your spread type above and enter your trade details. The calculator updates your P&L results in real time. Here is what each input does.
Pull current market data (optional)
Type a ticker like AAPL and click Get Price. The calculator fills in the current stock price, dividend yield, and the risk-free rate from the 13-week T-bill, then loads the option chain so you can pick actual strikes and premiums.
Pick a strategy template
Choose from 36 strategy templates to pre-fill the legs, or build any combination of calls, puts, and stock manually. The calculator works out implied volatility from each premium you enter, and you can still edit it.
Calculate and read the results
Click Calculate P&L to see max profit, max loss, breakeven, return on risk, and probability of profit, plus position Greeks: delta, gamma, theta, vega, and rho.
Stress test before you trade
Drag the view-date slider to see your P&L curve on any day before expiration, shift implied volatility up or down 50 points, and scan the price-by-date P&L table to see how the trade behaves across scenarios.
This option spread calculator prices each leg with your choice of an American-style binomial model (the default for US equity options) or European Black-Scholes-Merton, and accounts for dividend yield. You can set a per-contract commission, copy a shareable link to your exact setup, download the chart as a PNG, and switch to dark mode.
Debit spreads vs credit spreads
All four vertical spreads share the same basic structure: one long option and one short option at different strikes. The difference is in direction, cost, and how you collect or pay premium.
A vertical spread means both legs share the same expiration date but use different strike prices. You buy one option and sell another. The two legs offset each other, which reduces both your cost and your maximum reward compared to buying a single option outright.
The trade-off is worth it for many traders because the defined risk and defined reward make position sizing and risk management much more straightforward than holding a naked long option where time decay chips away at value every day.
Debit spreads: you pay to enter
Debit spreads cost money to open. You pay a net premium because the option you buy is more expensive than the one you sell. Your maximum loss is the premium paid. Your maximum gain is the spread width minus what you paid. Debit spreads are used when you have a directional view and want to reduce the cost of an outright long option. Bull call spreads are bullish debit spreads. Bear put spreads are bearish debit spreads.
Credit spreads: you collect to enter
Credit spreads bring in cash when you open them. You collect a net premium because the option you sell is more expensive than the one you buy. Your maximum gain is the credit collected. Your maximum loss is the spread width minus the credit received. Credit spreads are most effective when you expect the stock to stay on one side of your short strike through expiration. Bull put spreads are bullish credit spreads. Bear call spreads are bearish credit spreads.
All four vertical spread strategies at a glance
Each vertical spread has its own dedicated calculator with a full worked example, strategy breakdown, and FAQ.
| Strategy | Type | Directional Bias | Max Profit | Max Loss | Calculator |
|---|---|---|---|---|---|
| Bull Call Spread | Debit | Bullish | Spread width minus debit paid | Net debit paid | Open calculator |
| Bear Put Spread | Debit | Bearish | Spread width minus debit paid | Net debit paid | Open calculator |
| Bull Put Spread | Credit | Bullish to Neutral | Net credit received | Spread width minus credit | Open calculator |
| Bear Call Spread | Credit | Bearish to Neutral | Net credit received | Spread width minus credit | Open calculator |
Which spread should you use?
If you are bullish, the bull call spread and bull put spread are your two choices. The bull call spread is a debit trade where you pay upfront and need the stock to move up through your short strike to hit max profit. The bull put spread is a credit trade where you collect premium upfront and profit as long as the stock stays above your short put strike at expiration. Many traders prefer credit spreads because time decay works in their favor.
If you are bearish, the bear put spread and bear call spread are the equivalent pair. The bear put spread is a debit trade that profits from a meaningful drop below your long put strike. The bear call spread is a credit trade that profits as long as the stock stays below your short call strike through expiration. Each strategy has a different breakeven and risk profile, so using the dedicated calculator for each one before you place the trade is the best way to compare them accurately.
Credit spread calculator
A credit spread calculator works the same way in both directions: sell the closer-to-the-money option, buy the further one, and collect a net credit. Your max profit is the credit collected, and your max loss is the width of the strikes minus that credit.
For a put credit spread, use the bull put spread calculator. For a call credit spread, use the bear call spread calculator. Both pre-fill the legs so you only need strikes and premiums, and both show probability of profit, which is the number most credit spread traders care about.
Debit spread calculator
A debit spread calculator flips the structure: buy the closer-to-the-money option, sell the further one, and pay a net debit. Max loss is the debit paid, and max profit is the width of the strikes minus that debit.
For a call debit spread, use the bull call spread calculator. For a put debit spread, use the bear put spread calculator. If you want to compare a vertical spread against a single long option, the calculator above handles any two-leg vertical: pick a template and swap strikes until the risk-reward looks right.
Explore other options strategy calculators
Each strategy has its own dedicated calculator with a full P&L breakdown, worked example, and FAQ.
Free trading journal
Track whether your option spreads are consistently profitable
You modeled the spread. Now find out if your vertical spreads are actually paying off. Enter your email to get the free options trading journal template (Excel and Google Sheets).
- Free trading journal template (Excel and Google Sheets)
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Option spread calculator FAQ
Common questions about vertical spreads and how to use this calculator.
An option spread is a trade that involves buying and selling two options on the same underlying stock at the same time. The two options share the same expiration date but have different strike prices. Spreads define both your maximum profit and maximum loss before you enter, making risk management much more predictable than trading naked options.
A debit spread costs money to open. You pay a net premium because the option you buy costs more than the one you sell. Bull call spreads and bear put spreads are the most common debit spreads. A credit spread brings in cash when you open it. You collect a net premium because the option you sell costs more than the one you buy. Bull put spreads and bear call spreads are the most common credit spreads. In both cases, your maximum risk and maximum reward are fully defined from the start.
For a bull call spread, the breakeven is the long call strike plus the net debit paid. For a bear put spread, the breakeven is the long put strike minus the net debit paid. For a bull put spread, the breakeven is the short put strike minus the net credit received. For a bear call spread, the breakeven is the short call strike plus the net credit received. The option spread calculator above computes all of this automatically as soon as you enter your inputs.
On a debit spread, the maximum profit equals the width of the strikes minus the net premium paid, multiplied by 100 shares per contract. On a credit spread, the maximum profit is the net credit received multiplied by 100. To hit max profit on a debit spread, the stock needs to close at or beyond your short strike at expiration. On a credit spread, max profit is reached when the spread expires worthless with the stock on the favorable side of your short strike.
On a debit spread, the maximum loss is the net premium paid multiplied by 100. On a credit spread, the maximum loss is the spread width minus the net credit received, multiplied by 100. For example, on a $5-wide credit spread where you collected $1.50, the max loss is $350 per contract ($5.00 – $1.50 = $3.50, times 100 shares). Both debit and credit spreads have fully defined risk, which is one of their biggest advantages over selling naked options.
This calculator is for educational and informational purposes only. Options trading involves substantial risk and is not suitable for all investors. Past performance is not indicative of future results. Always consult a licensed financial professional before making investment decisions.