This options spread calculator takes the figures you already have and applies the relationship behind options spread calculations for you, giving net credit spread, net debit spread and maximum profit from premium spent for buying the call, premium spent for buying the call, premium received for selling the call, strike price of the call you buy, strike price of the call you sell, premium spent for buying the put, premium received for selling the put, strike price of the put you buy, strike price of the put you sell, premium spent for buying the put, amount of options you will trade, premium received for selling the call, premium received for selling the put, strike price of the call you buy, strike price of the put you buy, strike price of the call you sell, strike price of the put you sell and your target price at expiration.
What Is the Options Spread Calculator?
The options spread calculator takes premium spent for buying the call, premium spent for buying the call, premium received for selling the call, strike price of the call you buy, strike price of the call you sell, premium spent for buying the put, premium received for selling the put, strike price of the put you buy, strike price of the put you sell, premium spent for buying the put, amount of options you will trade, premium received for selling the call, premium received for selling the put, strike price of the call you buy, strike price of the put you buy, strike price of the call you sell, strike price of the put you sell and your target price at expiration and turns them into net credit spread, net debit spread and maximum profit.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Options Spread Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with premium spent for buying the call set to 10, premium spent for buying the call set to 5, premium received for selling the call set to 2, the calculator returns net debit spread of 180, and maximum loss of 18,000, and maximum profit of 37,000. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out net credit spread?
Enter premium spent for buying the call, premium spent for buying the call, premium received for selling the call, strike price of the call you buy, strike price of the call you sell, premium spent for buying the put, premium received for selling the put, strike price of the put you buy, strike price of the put you sell, premium spent for buying the put, amount of options you will trade, premium received for selling the call, premium received for selling the put, strike price of the call you buy, strike price of the put you buy, strike price of the call you sell, strike price of the put you sell and your target price at expiration. The calculator then works through the relationship and reports net credit spread, net debit spread and maximum profit.
What does the options spread actually calculate?
It takes premium spent for buying the call, premium spent for buying the call, premium received for selling the call, strike price of the call you buy, strike price of the call you sell, premium spent for buying the put, premium received for selling the put, strike price of the put you buy, strike price of the put you sell, premium spent for buying the put, amount of options you will trade, premium received for selling the call, premium received for selling the put, strike price of the call you buy, strike price of the put you buy, strike price of the call you sell, strike price of the put you sell and your target price at expiration and converts them into net credit spread, net debit spread and maximum profit using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter premium spent for buying the call?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.
Is the answer exact?
It is as exact as the formula and the inputs allow. The method itself is the standard one for this problem, so the only sources of error are the figures you enter and the precision you ask for.