Free credit spread calculator covering bull put and bear call flavours — enter your strikes and net credit to see max profit, max loss, break-even, return on risk, annualised return and an annotated payoff diagram.
What this calculator does
Two-leg credit spreads — bull put or bear call, directional, defined risk, side-by-side.
Closer to spot — sold for premium; above the long put.
Further OTM guardrail; below the short put.
Premium received on the short leg minus premium paid on the long.
Snap wing to
Max profit
$1.50
Stock above $490.00
Max loss
-$3.50
Stock below $485.00
Break-even
$488.50
Short put − credit
Return on risk
42.9%
446.9% annualised
Wing width
$5.00
Capital at risk $3.50 per share
Days to expiry
35
Annualised: 446.9%
Setup
Bull put spread
Net credit $1.50 on a $5.00-wide spread
Payoff at expiry
Frequently asked questions
Quick answers to the questions most often asked about this calculator.
What is a credit spread?
A credit spread is a two-leg options trade where you sell one option closer to the money and buy a further-OTM option of the same type as a guardrail, collecting a net credit at open. You profit if the stock stays on the favourable side of your short strike through expiry; the long leg caps the loss if the trade moves against you.
What's the difference between bull put and bear call spreads?
A bull put spread is built from puts below the stock and profits when the stock holds up — bullish-to-neutral. A bear call spread is built from calls above the stock and profits when the stock stays soft — bearish-to-neutral. The math is identical (max profit = credit, max loss = wing width − credit, break-even = short strike ± credit) — only the strike layout flips around the current price.
How do I calculate credit spread profit?
Max profit equals the net credit you collected per share. Max loss equals the wing width (the strike difference between the long and short leg) minus the net credit. Multiply by 100 to get the per-contract dollar amount.
What's the break-even on a credit spread?
For a bull put spread the break-even is the short put strike minus the net credit. For a bear call spread it's the short call strike plus the net credit. The stock can sit on the safe side of that price at expiry and the trade still finishes profitable.
When does a credit spread lose money?
A credit spread starts losing money once the stock crosses your break-even and reaches max loss when it punches at or past your long strike. Sharp directional moves through the short strike are the failure mode — that's why credit spreads are best on stocks with no binary catalyst inside the option's life.
