Income Strategy
Credit Spread Calculator
Calculate potential returns for credit spreads. Receive premium upfront with defined risk and reward.
BullishLimited RiskLimited Reward
A bull put spread sells a higher strike put and buys a lower strike put. You receive a net credit and profit if the stock stays above the short strike.
Spread Configuration
Current price: $100.00
Short Put (Sell)
Long Put (Buy)
Payoff at ExpirationStock Price vs Profit/Loss
Current: $100.00
Breakeven: $93.00
Max Profit
$200.00
Max Loss
$300.00
Trade Summary
Net Credit$200.00
Max Profit$200.00
Max Loss$300.00
Breakeven$93.00
Risk/Reward1:0.67
Credit Received
$200.00
Return on Risk
66.7%
Spread Width
$5.00
Breakeven
$93.00
Understanding Credit Spreads
Credit spreads are popular income strategies where you receive premium upfront in exchange for taking on defined risk. They benefit from time decay and are often used to generate consistent income.
Bull Put Spread
- • Sell higher strike put
- • Buy lower strike put
- • Bullish to neutral outlook
- • Profit if stock stays above short strike
Bear Call Spread
- • Sell lower strike call
- • Buy higher strike call
- • Bearish to neutral outlook
- • Profit if stock stays below short strike
Key Formulas
Maximum Profit
Max Profit = Net Credit ReceivedMaximum Loss
Max Loss = (Spread Width × 100) - Net CreditReturn on Risk
Return = (Net Credit / Max Loss) × 100Related Calculators
Track Your Credit Spread Income
Monitor your credit spread performance and track premium collected over time.
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