Options Spread Calculator

Model a two-leg vertical options spread. Enter both strike prices, both premiums, and the contract count to get the net debit or credit, max profit, max loss, and breakeven price at expiration.

Quick Facts

Formula
Max profit + Max loss = Strike width × 100 × Contracts
Strike width is the distance between the two strikes; 100 is the standard equity-option share multiplier per contract.
Model
Vertical spread, priced at expiration
Assumes both legs share the same underlying and expiration date; ignores commissions, dividends, and early assignment.

Your Results

Calculated
Net premium
-
Debit paid or credit received
Max profit
-
Best case at expiration
Max loss
-
Worst case at expiration
Breakeven price
-
Underlying price at breakeven

Ready

Enter both strikes, both premiums, and the contract count, then press Calculate.

How the Options Spread Calculator works

A vertical spread combines two options of the same type — both calls or both puts — on the same underlying and the same expiration date, but at two different strike prices. One leg is bought (long) and the other is sold (short). This calculator prices the spread at expiration using the standard vertical-spread payoff formulas, so you can see the net cost, the capped best and worst cases, and the breakeven price before you commit capital.

The four vertical spread types

  • Bull Call Spread (debit): buy the lower-strike call, sell the higher-strike call. You pay a net debit and profit if the underlying rises.
  • Bear Call Spread (credit): sell the lower-strike call, buy the higher-strike call. You collect a net credit and profit if the underlying stays below the lower strike.
  • Bull Put Spread (credit): sell the higher-strike put, buy the lower-strike put. You collect a net credit and profit if the underlying stays above the higher strike.
  • Bear Put Spread (debit): buy the higher-strike put, sell the lower-strike put. You pay a net debit and profit if the underlying falls.

The formula

Let W be the strike width (higher strike minus lower strike) and N be the net premium per share (debit paid or credit received). For any vertical spread, one of max profit or max loss equals N × 100 × contracts and the other equals (W − N) × 100 × contracts — the two always sum to W × 100 × contracts, since 100 shares is the standard equity-option multiplier per contract. Breakeven is the strike nearest the money adjusted by N: for call spreads it is the lower strike plus N; for put spreads it is the higher strike minus N.

Worked example

Take a Bull Call Spread: buy the 100-strike call for $6.50, sell the 110-strike call for $2.50, one contract. The net debit is $6.50 − $2.50 = $4.00 per share, or $400 total (× 100 shares). The strike width is $10, so max profit is ($10 − $4.00) × 100 = $600, and max loss is the $400 debit already paid. Breakeven is the 100 strike plus the $4.00 debit = $104. The trade risks $400 to make up to $600, a risk/reward of roughly 1 : 1.5.

What this calculator assumes

This is an at-expiration payoff calculation, not a live pricing model. It assumes both legs are held to expiration, ignores time decay and implied-volatility changes between now and expiration, does not model dividends or early assignment on American-style options, and excludes commissions and bid/ask slippage. Use it to understand the defined-risk structure of a spread before you place it, not as a live quote.

Frequently Asked Questions

What is a vertical options spread?
A vertical spread combines two options of the same type (both calls or both puts) on the same underlying with the same expiration date, but different strike prices. One leg is bought (long) and the other is sold (short). Because the two legs partly offset each other, a vertical spread has a lower cost and lower risk than a single option, but also a capped maximum profit.
How are max profit, max loss, and breakeven calculated?
For any vertical spread, max profit plus max loss always equals the strike width (the difference between the two strikes) multiplied by 100 shares per contract and the number of contracts. For a debit spread (bull call or bear put), max loss is the net premium paid and max profit is the strike width minus that debit. For a credit spread (bull put or bear call), max profit is the net premium received and max loss is the strike width minus that credit. Breakeven is the long strike offset by the net debit or credit.
Why did the calculator flag my inputs as invalid?
The calculator rejects premiums that would produce a negative net debit or net credit, or a negative max profit or max loss, because that combination cannot occur in a real, correctly priced vertical spread. Double-check that the higher strike price has a lower call premium (or higher put premium) than the lower strike, matching normal option pricing.
Does this model price changes before expiration?
No. This is an at-expiration payoff calculation: it assumes both legs are held to expiration and settle on intrinsic value only. It ignores time decay, implied volatility changes, dividends, early assignment on American-style options, and commissions, all of which can shift the spread's value before expiration.

Related calculators