Options Spread Calculator
Calculate bull/bear call/put spread strategies with profit/loss analysis
Calculate Options Spread Strategy
Select Spread Strategy
Bull Call Spread
Strategy: Buy low strike call, sell high strike call
Market Outlook: Bullish (expecting price increase)
Type: Debit Spread
Risk: Limited risk and reward
Contract Details
Number of option contracts (each contract = 100 shares)
Expected stock price at expiration
Long Call (Buy)
Short Call (Sell)
Example Calculations
Bull Call Spread Example
AMD Stock Example (5 contracts)
Long Call: Strike $125, Premium $0.77
Short Call: Strike $132, Premium $0.19
Net Debit: ($0.77 - $0.19) × 5 = $2.90
Max Loss: $2.90 × 100 = $290
Max Profit: ($7 - $0.58) × 5 × 100 = $3,210
Breakeven: $125 + $0.58 = $125.58
Bear Put Spread Example
AMD Stock Example (1 contract)
Long Put: Strike $130, Premium $5.00
Short Put: Strike $120, Premium $2.00
Net Debit: ($5.00 - $2.00) × 1 = $3.00
Max Loss: $3.00 × 100 = $300
Max Profit: ($10 - $3) × 1 × 100 = $700
Breakeven: $130 - $3 = $127
Spread Strategies Guide
Bullish Spreads
Bull Call & Bull Put spreads
Profit from price increases
Bearish Spreads
Bear Call & Bear Put spreads
Profit from price decreases
Credit Spreads
Receive net premium upfront
Bull Put & Bear Call
Debit Spreads
Pay net premium upfront
Bull Call & Bear Put
Key Benefits
Limited risk exposure
Reduced cost compared to single options
Defined profit potential
Less impact from time decay
Suitable for moderate market views
⚠️ Risk Warning
Options trading involves significant risk and may not be suitable for all investors.
Spreads can result in total loss of premium paid or assignment obligations.
Consider your risk tolerance and investment objectives before trading options.
Understanding Options Spreads
What are Options Spreads?
Options spreads are trading strategies that involve buying and selling multiple options contracts simultaneously. These strategies combine long and short positions to create defined risk and reward profiles, making them popular among traders seeking controlled exposure.
Types of Spreads
- •Vertical Spreads: Same expiration, different strikes
- •Credit Spreads: Receive net premium upfront
- •Debit Spreads: Pay net premium upfront
- •Bullish/Bearish: Directional strategies
Key Advantages
- ✓Limited maximum loss
- ✓Reduced cost of entry
- ✓Defined profit potential
- ✓Lower time decay impact
Strategy Selection
Choose your spread strategy based on your market outlook: bullish spreads for expected price increases, bearish spreads for expected decreases. Consider volatility, time to expiration, and your risk tolerance when selecting strike prices and spread width.