# Options Spread Calculator (Vertical Spreads)

URL: https://speedycalculator.com/calculators/finance/options-spread/
Last updated: 2026-10-25

> The options spread calculator analyses vertical spreads – bull call, bear call, bull put and bear put – showing the net debit or credit, maximum profit, maximum loss, break-even price and the profit at a target price at expiry.

## Inputs

- Spread type
- Lower strike price
- Premium of the lower-strike option
- Higher strike price
- Premium of the higher-strike option
- Number of contracts
- Target price at expiration

## Results

- Net premium per share (+ credit / − debit)
- Maximum profit
- Maximum loss
- Break-even price
- Profit or loss at the target price

## Formula

```
Bull call: buy lower-strike call, sell higher-strike call (debit)
Bear call: sell lower call, buy higher call (credit)
Bull put: sell higher put, buy lower put (credit)
Bear put: buy higher put, sell lower put (debit)
P/L per contract = per-share P/L × 100
```

## Explanation

Vertical spreads cap both profit and loss, making them cheaper and less risky than buying or selling single options. Debit spreads profit from a move in your direction; credit spreads profit if the price stays on the right side of the short strike.

### How to use the Options Spread Calculator

- **Spread type**
- **Lower strike price**
- **Premium of the lower-strike option**
- **Higher strike price**
- **Premium of the higher-strike option**
- **Number of contracts**
- **Target price at expiration**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

Choose the spread, enter the lower and higher strike prices with their option premiums, the number of contracts and the target price at expiry.

### Tips

- Use annualised volatility and interest rates as decimals per year.
- Remember that one standard option contract usually covers 100 shares.
- Options lose time value as expiry approaches – re-run the numbers as dates change.
- Derivatives can lose more than you expect; understand the maximum loss before trading.

### Common mistakes to avoid

- Mixing days and years for time to expiry.
- Ignoring commissions and the bid–ask spread.
- Forgetting dividends when pricing options on dividend-paying stocks.

### Inputs explained

FieldWhat to enterSpread typeChoose one: Bull call spread (debit), Bear call spread (credit), Bull put spread (credit), Bear put spread (debit)Lower strike priceAmount in your currencyPremium of the lower-strike optionAmount in your currencyHigher strike priceAmount in your currencyPremium of the higher-strike optionAmount in your currencyNumber of contractsA numberTarget price at expirationAmount in your currency

### Example values

How the main result changes when **Lower strike price** changes and everything else stays at the example values above:

Lower strike priceProfit or loss at the target price505,350752,850100350125-350150-350200-350

## Worked example

Inputs — Spread type: Bull call spread (debit); Lower strike price: $100; Premium of the lower-strike option: $6; Higher strike price: $110; Premium of the higher-strike option: $2.5; Number of contracts: 1; Target price at expiration: $107.

Results — Net premium per share (+ credit / − debit) = $-3.50; Maximum profit = $650.00; Maximum loss = $350.00; Break-even price = $103.50; **Profit or loss at the target price = $350.00**.

## FAQ

**What is a vertical spread?**
Buying and selling options of the same type and expiry with different strikes.

**Debit or credit spread – which is better?**
Debit spreads need a move; credit spreads profit from time decay if the price holds.

**What is the maximum loss on a spread?**
It's capped – the debit paid, or the strike width minus the credit received.

**What formula does the Options Spread Calculator use?**
Bull call: buy lower-strike call, sell higher-strike call (debit).


## Sources

- [Options Industry Council – Spreads](https://www.optionseducation.org/)