Vertical Spread Calculator

A vertical spread combines a long and a short option of the same type (both calls or both puts) at two different strikes, in the same expiration. The four common versions, bull call, bear call, bull put, and bear put, cap both the maximum profit and maximum loss, trading away some of the upside a single option would have for a lower cost and a defined risk.

This calculator handles all four types from one form: pick the spread type, enter the two strikes and premiums, and it maps them to the correct long and short legs automatically.

How does this calculator work?

Choose the spread type. A bull call or bull put spread profits from the stock rising (or staying above a level); a bear call or bear put spread profits from the stock falling (or staying below a level).

Enter the lower and higher strikes and their premiums, the current price, an implied volatility assumption, days to expiration, and the risk-free rate.

The calculator shows the net cost or credit, the breakeven, max profit, max loss, and probability of profit.

A vertical spread is the building block of wider structures: stack a put spread beneath a call spread and you have an iron condor, the range-bound cousin of a directional spread. Its defined risk and reward come straight from the strikes and premiums, the same inputs any options payoff chart uses, and the trade's probability of profit depends on the implied volatility you assume.

Worked example

A bull call spread: buy the $100 call for $5.00, sell the $110 call for $2.00, on a stock at $100.

Net debit

$300

Breakeven

$103.00

Max profit

$700 (at or above $110)

Max loss

$300 (at or below $100)

How the numbers work

Buying the $100 call costs $500 and selling the $110 call collects $200, for a net cost of $300, less than buying the $100 call alone would cost.

The trade-off for that lower cost is a capped profit: above $110, the short call's losses exactly offset the long call's further gains, so the maximum profit is fixed at the $10 spread width minus the $3 net cost, or $700.

Below $100, both options expire worthless and the full $300 debit is lost, the maximum possible loss on the trade.

Vertical spreads are the standard way to reduce the cost (and therefore the risk) of a directional options bet, at the cost of capping how much a strongly favorable move can pay off. They're a natural next step after a single call or put once you have a specific price target in mind rather than an open-ended one.