Analyze vertical spread strategies: bull call, bear put, and more.
Max Profit—
Max Loss—
Break-Even Price—
Net Debit / Credit—
Risk/Reward Ratio—
Bull Call Spread:
Net Debit = Long Premium − Short Premium
Max Profit = (Upper Strike − Lower Strike − Net Debit) × 100 × Contracts
Max Loss = Net Debit × 100 × Contracts
Break-Even = Lower Strike + Net Debit
What is an Options Spread?
An options spread involves simultaneously buying and selling options of the same type (calls or puts) with different strike prices or expiration dates. Spreads limit both profit and loss potential, offering defined-risk strategies.