Credit Spread Calculator

Enter your spread details below to calculate P&L, breakeven, and Greeks instantly.

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SELL PUT (Short)
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$
BUY PUT (Long)
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Credit Spread at a Glance

Max Profit

Net credit received. You keep the full premium when the stock stays above the short put (bull put) or below the short call (bear call) at expiration.

Max Loss

Strike width minus net credit. A $5-wide spread with $1.50 credit risks $350 per contract. Always defined and capped.

Breakeven

Short put strike minus credit (bull put) or short call strike plus credit (bear call). One breakeven point per spread.

Best IV Environment

IV Rank above 50 is ideal. High implied volatility inflates option premiums, giving you a larger credit and better risk/reward.

Ideal DTE

30-45 days to expiration. Theta decay accelerates in this window, working in the seller's favor while allowing time to manage.

Defined Risk

The long option caps your loss at the spread width minus credit. No margin calls, no unlimited risk. Know your max loss before entering.

How to Calculate Credit Spread P&L

1

Choose Your Direction

Select Bull Put Spread if you are bullish/neutral (stock stays above short strike), or Bear Call Spread if you are bearish/neutral (stock stays below short strike).

2

Enter Strike Prices & Premiums

Set the short strike (closer to the money, collects more premium) and long strike (further OTM, caps your risk). Enter the premium for each leg.

3

Review Results Instantly

See max profit (net credit), max loss (width - credit), breakeven price, ROI %, and all Greeks. The payoff diagram shows P&L at every stock price.

4

Adjust & Compare

Widen or narrow the spread, change DTE, or toggle between bull put and bear call to find the best risk/reward for your outlook.

Credit Spread Formulas

  • + Max Profit: Net Credit Received x 100
  • - Max Loss: (Strike Width - Net Credit) x 100
  • = Bull Put BE: Short Put Strike - Net Credit
  • = Bear Call BE: Short Call Strike + Net Credit
  • % ROI: Net Credit / Max Loss x 100
  • : Risk/Reward: Max Loss / Max Profit

Example: SPY $440/$435 Bull Put Spread

Walk through a real credit spread example to see exactly how the calculator works.

The Setup

Stock Price: SPY = $445.00

IV Rank: 55 (elevated)

DTE: 35 days

Sell $440 Put: $3.20 (~30 delta)

Buy $435 Put: $1.70 (~20 delta)

Net Credit: $1.50 per share ($150 total)

Calculator Results

  • + Max Profit: $150 (credit received, SPY stays above $440)
  • - Max Loss: $350 ($5 width - $1.50 credit, SPY below $435)
  • = Breakeven: $438.50 ($440 - $1.50)
  • % ROI: 42.9% ($150 / $350)
  • : Risk/Reward: 2.33:1

Bull Put Spread vs Bear Call Spread

Both are credit spreads with defined risk. Your market outlook determines which to use.

Attribute Bull Put Spread Bear Call Spread
Direction Bullish / Neutral Bearish / Neutral
Options Used Puts (sell higher, buy lower) Calls (sell lower, buy higher)
Profits When Stock stays above short put strike Stock stays below short call strike
Breakeven Short put − credit Short call + credit
Max Profit Net credit received Net credit received
Max Loss Width − credit Width − credit
Assignment Risk May be assigned stock (buy shares) May be assigned stock (short shares)
Best Entry After a pullback, elevated IV After a rally, elevated IV

Strike Selection Guidelines

Conservative (High Win Rate)

  • Short strike delta: 15-20 (far OTM)
  • Width: $2-5
  • Credit: ~20-25% of width
  • Win rate: ~80-85%
  • Best for: Income traders, small accounts

Balanced (Standard)

  • Short strike delta: 25-35
  • Width: $5-10
  • Credit: ~30-35% of width
  • Win rate: ~65-75%
  • Best for: Most traders, best risk/reward

Aggressive (Higher Reward)

  • Short strike delta: 40-50 (ATM)
  • Width: $5-10
  • Credit: ~40-50% of width
  • Win rate: ~50-60%
  • Best for: Strong directional conviction

Frequently Asked Questions

What is a credit spread calculator?

A credit spread calculator is a tool that computes the maximum profit, maximum loss, breakeven price, and Greeks for bull put spreads and bear call spreads. It uses real-time option prices so you can see exact risk/reward before placing the trade. Our calculator supports 5,500+ tickers and includes probability of profit estimates.

How do you calculate max profit on a credit spread?

Max profit equals the net credit received multiplied by 100. For example, if you collect a $1.50 net credit on a bull put spread, max profit is $150 per contract. This full profit is realized when the stock closes above the short put strike (bull put) or below the short call strike (bear call) at expiration.

What is the max loss formula for a credit spread?

Max loss = (Strike Width - Net Credit) x 100. For a $5-wide spread with $1.50 credit: ($5.00 - $1.50) x 100 = $350. This occurs when the stock moves through both strikes at expiration. Credit spreads always have defined, capped risk.

How do you calculate breakeven on a credit spread?

Bull put spread: Breakeven = Short put strike - Net credit. Bear call spread: Breakeven = Short call strike + Net credit. For a $440/$435 bull put spread with $1.50 credit, breakeven = $440 - $1.50 = $438.50. The stock can drop $6.50 from $445 before you lose money.

What is the difference between a bull put spread and a bear call spread?

A bull put spread sells a higher-strike put and buys a lower-strike put. It profits when the stock stays flat or rises. A bear call spread sells a lower-strike call and buys a higher-strike call. It profits when the stock stays flat or drops. Both collect a net credit upfront and have identical risk/reward math (max profit = credit, max loss = width - credit).

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