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Finance Calc Kit
Investments

Options Spread

Calculate profit, loss, breakeven, and potential returns for Bull Call, Bear Call, Bull Put, and Bear Put vertical options spread strategies.

Spread setup

$
$
$
$
$

Net Debit

-$2.90

Per spread before the 100-share multiplier

Maximum loss

-$290.00

Maximum profit

$3,210.00

Breakeven price

$125.58

Profit at $130.00

$2,210.00

How we calculated this

Open to see each step from your inputs to the result.

  1. 1. Net debit or credit

    Net=(short premium−long premium)×contracts\text{Net} = (\text{short premium} - \text{long premium}) \times \text{contracts}

    Net debit = (0.19 - 0.77) * 5 = $-2.90 per spread leg

  2. 2. Maximum loss

    Max loss=∣net debit∣×100×contracts\text{Max loss} = |\text{net debit}| \times 100 \times \text{contracts}

    Maximum loss = $290.00

  3. 3. Maximum profit

    Max profit=(strike width−net debit)×100×contracts\text{Max profit} = (\text{strike width} - \text{net debit}) \times 100 \times \text{contracts}

    Maximum profit = $3,210.00

  4. 4. Breakeven at expiration

    Breakeven stock price = $125.58

  5. 5. Profit at target price

    P/L at $130.00 = $2,210.00

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Vertical options spread strategies

A vertical spread combines a long and short option at different strike prices with the same expiration. You pay a net debit or receive a net credit, which caps both maximum loss and maximum profit. This calculator covers bull call, bear call, bull put, and bear put vertical spreads.

Spreads are defined-risk strategies popular for directional trades with lower capital requirements than buying naked options. To model broader portfolio growth assumptions behind your options capital, use the investment calculator. For compound growth on idle cash while waiting for entry, try the compound interest calculator. To evaluate position sizing and leverage on margin accounts, see the margin calculator. To verify European call and put prices against the no-arbitrage put-call parity relationship, use the put-call parity calculator.

Bull call spread example

Buy a $125 call for $0.77 and sell a $132 call for $0.19 on 5 contracts:

Net debit=(long premium−short premium)×100×n\text{Net debit} = (\text{long premium} - \text{short premium}) \times 100 \times n
  • Net debit = ($0.77 - $0.19) * 100 * 5 = $290
  • Max profit = ($132 - $125 - $0.58) * 100 * 5 = $3,210
  • Breakeven = $125 + $0.58 = $125.58
  • Profit at $130 = ($130 - $125.58) * 100 * 5 = $2,210

Strategy overview

  • Bull call spread: Debit spread for moderately bullish outlook. Max loss is the net premium paid.
  • Bear call spread: Credit spread for neutral-to-bearish outlook. Profit if the stock stays below the short strike.
  • Bull put spread: Credit spread for bullish outlook. Collect premium with obligation to buy at the long put strike.
  • Bear put spread: Debit spread for bearish outlook. Profit if the stock falls below the breakeven.

Frequently asked questions

What is the 100 multiplier?
Each standard U.S. equity options contract represents 100 shares. Premiums are quoted per share, so total dollar amounts multiply by 100 and then by the number of contracts.
When does max profit occur?
For call spreads, max profit is reached when the stock is at or above the short strike at expiration. For put spreads, max profit occurs at or below the short strike. The calculator assumes European-style payoff at expiration.
What if my strikes are in the wrong order?
Each strategy requires specific strike ordering. Bull call spreads need the short call above the long call. The calculator validates strike order and shows an error if the setup is invalid.
Are commissions included?
No. Results reflect premium math only. Add your broker commissions and fees to net debit or credit for a complete cost picture.
Are results stored?
No. All math runs in your browser. Nothing is sent to the server.

Resources and references

The formulas and methods in this calculator were checked against these independent sources.