Call/Put Option Spread Calculator
This option spread calculator lets you analyze the profit, loss, breakeven points, and payoff chart of two-leg call or put spreads. To use it, add two option legs of the same type—either two calls or two puts—with one being long and the other short. The tool supports both credit and debit spreads, helping you evaluate potential outcomes before entering a trade.
How to Use the Option Spread Calculator
To get accurate results, select either two calls or two puts. One leg should be a long position and the other should be a short position. Based on how you configure the strikes and premiums, the calculator will determine if it’s a debit or credit spread and display the corresponding payoff chart.
Call Debit Spread (Bull Call Spread)
To set up a call debit spread:
- Buy a call with a lower strike price
- Sell a call with a higher strike price
This creates a bullish position with limited risk and limited profit. You pay a net debit to enter the trade.
Call Credit Spread (Bear Call Spread)
To set up a call credit spread:
- Sell a call with a lower strike price
- Buy a call with a higher strike price
This creates a bearish position. You receive a net credit up front, with limited profit and limited loss potential.
Put Debit Spread (Bear Put Spread)
To set up a put debit spread:
- Buy a put with a higher strike price
- Sell a put with a lower strike price
This is a bearish strategy where you pay a net debit and aim to profit if the stock moves lower.
Put Credit Spread (Bull Put Spread)
To set up a put credit spread:
- Sell a put with a higher strike price
- Buy a put with a lower strike price
This creates a bullish position. You collect a credit and want the stock to stay above the short strike to realize maximum profit.
Understanding Option Spreads
What Is an Option Spread?
An option spread is a multi-leg strategy where you buy and sell options of the same type (calls or puts) with different strike prices or expiration dates. Spreads help traders define risk and reduce cost compared to buying or selling a single option outright.
What Is a Credit Spread?
A credit spread is created when the premium received from the short leg is greater than the premium paid for the long leg. You collect a net credit up front and aim to keep it as profit if the trade moves in your favor.
What Is a Debit Spread?
A debit spread is entered when the premium paid for the long leg is greater than the premium received from the short leg. You pay a net debit and profit when the underlying stock moves in the direction of the spread.
What Is a Call Credit Spread?
A call credit spread, also called a bear call spread, involves selling a call at a lower strike and buying a call at a higher strike. It profits if the stock stays below the lower strike by expiration.
What Is a Put Credit Spread?
A put credit spread, or bull put spread, is built by selling a higher strike put and buying a lower strike put. It profits if the stock stays above the higher strike at expiration.
What Is a Call Debit Spread?
A call debit spread (bull call spread) involves buying a lower strike call and selling a higher strike call. It profits when the stock rises above the breakeven point between the two strikes.
What Is a Put Debit Spread?
A put debit spread (bear put spread) involves buying a higher strike put and selling a lower strike put. It profits when the stock drops below the breakeven point between the two strikes.
What Is a Vertical Spread?
A vertical spread is a type of option spread where both legs have the same expiration date but different strike prices. Vertical spreads include both debit and credit spreads, using calls or puts, and are named for their appearance on an options chain.