Vertical Spread Calculator
Max profit, max loss, and break-even for any two-leg vertical: bull call, bear put, bull put, or bear call.
Buy a lower call, sell a higher one. Pay to open, profit if the stock rises.
Figures are per position at expiration and include the 1 contract entered, at 100 shares each. They exclude commissions, assignment fees, and any early-assignment or dividend risk on short legs. Values before expiration differ, because time value and implied volatility still carry weight.
A vertical spread buys one option and sells another of the same type and expiration at a different strike. The sold leg pays for part of the bought leg, which is the whole point: you give up the unlimited tail in exchange for a cheaper position and a defined worst case. Both the profit and the loss are capped, and both are known before you open.
Worked example. Buy the 100 call for $5.00 and sell the 110 call for $2.00. The net debit is $300 for one contract, which is also the most you can lose. Break even at $103.00, the lower strike plus the debit per share. Above $110 both legs are in the money and the spread is worth its full $10 width, so max profit is $700, the width minus what you paid.
Frequently asked questions
What is the difference between a debit and a credit spread?
A debit spread costs money to open and needs the stock to move toward your strikes to pay off. A credit spread pays you up front and profits if the stock simply fails to move against you. The same strikes can be expressed either way: a bull call debit spread and a bull put credit spread at the same strikes are economically near identical positions.
How is the break-even calculated?
For a debit spread it is the long strike plus the net debit per share (calls) or minus it (puts). For a credit spread it is the short strike minus the credit per share (puts) or plus it (calls). This calculator solves it from the payoff directly, so it stays correct for any strike combination you enter.
Why is max loss on a credit spread bigger than the credit?
Because your risk is the width between the strikes, less what you were paid. A $5-wide spread opened for $1.10 risks $390 to make $110. That ratio is the trade-off for a high win rate, and it is why one loss can erase several wins.
Can I be assigned early on the short leg?
Yes. American-style options can be exercised any time, and short legs are most at risk when they are deep in the money or when a dividend is about to be paid on the underlying. The long leg caps your loss but does not stop assignment from happening, and it can leave you holding stock unexpectedly.
Does the calculator account for time value?
No. Every figure here is the value at expiration, which is when the payoff is fully determined. Before expiration the position is worth something different, because time value and implied volatility still matter. Use the Black-Scholes pricing calculator for a value today.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.