Calculate profit, loss, and breakeven for bull call spreads, bear put spreads, iron condors, and straddles. View P/L at expiration across price ranges.
Options spreads combine long and short option positions to create defined-risk trades with known maximum profit and loss before entering the position. They are the foundation of professional options trading, offering more capital-efficient strategies than naked options.
A bull call spread profits from moderate upward moves by buying a lower-strike call and selling a higher-strike call. A bear put spread profits from moderate drops. An iron condor collects premium from range-bound markets by selling both a put spread and call spread. A straddle profits from large moves in either direction.
This calculator computes net cost or credit, maximum profit, maximum loss, breakeven points, and risk/reward ratios across four spread types. The P/L table shows the exact dollar outcome at every expiration price, while the risk/reward visual helps you immediately assess whether the trade setup is favorable. Check the example with realistic values before reporting. Use the steps shown to verify rounding and units. Cross-check this output using a known reference case.
Knowing your exact max profit and max loss before entering a trade is what separates disciplined traders from gamblers. This calculator maps out every spread scenario so you can compare strategies and select the one that matches your outlook and risk tolerance. Keep these notes focused on your operational context.
Bull Call: Net Debit = Buy Premium − Sell Premium Max Profit = (Sell Strike − Buy Strike) − Net Debit Breakeven = Buy Strike + Net Debit Bear Put: Net Debit = Buy Premium − Sell Premium Max Profit = (Buy Strike − Sell Strike) − Net Debit Breakeven = Buy Strike − Net Debit Iron Condor: Net Credit = Sell Premium − Buy Premium Max Loss = Wing Width − Net Credit
Result: Net debit $300, Max Profit $700, Breakeven $103
Buy the 100 call for $5, sell the 110 call for $2 → $3 net debit ($300). Max profit is $10 width − $3 cost = $7 ($700). Breakeven at $103 (buy strike + net debit).
Use consistent units, verify assumptions, and document conversion standards for repeatable outcomes.
Most mistakes come from mixed standards, rounding too early, or misread labels. Recheck final values before use. ## Practical Notes
Use this for repeatability, keep assumptions explicit. ## Practical Notes
Track units and conversion paths before applying the result. ## Practical Notes
Use this note as a quick practical validation checkpoint. ## Practical Notes
Keep this guidance aligned to expected inputs. ## Practical Notes
Use as a sanity check against edge-case outputs. ## Practical Notes
Capture likely mistakes before publishing this value. ## Practical Notes
Document expected ranges when sharing results.
A trade with two options of the same type (both calls or both puts) and same expiration but different strikes. Bull call and bear put spreads are vertical spreads.
Yes — it combines a bull put spread (below) and a bear call spread (above). You profit if the stock stays between the inner strikes.
Spreads reduce cost basis and define max loss. Selling the far-strike option finances part of the position and caps both risk and reward.
Usually yes. Close at 50-75% of max profit to avoid gamma risk near expiration. Also close if the position moves against you past your stop-loss level.
Professionals target at least 1:1 risk/reward for directional spreads and accept lower ratios (1:0.3) for high-probability iron condors.
Each spread has 2+ legs, so commissions are doubled. Factor in at least $0.50-$0.65 per contract per leg for accurate P/L calculations.