Calculator Inputs
Formula Used
Net credit per share = short put premium - long put premium - fees per share.
Maximum profit = net credit per share × contract multiplier × contracts.
Maximum loss = spread width × contract multiplier × contracts - net credit after fees.
Breakeven price = short put strike - net credit per share.
Payoff at expiration = credit received - short put intrinsic value + long put intrinsic value - fees.
Return on risk = maximum profit ÷ maximum loss × 100.
How To Use This Calculator
- Enter the higher strike for the short put.
- Enter the lower strike for the protective long put.
- Add each premium, total contracts, multiplier, and fees.
- Enter the current price and the planned expiration price.
- Add volatility and days to expiry for probability estimation.
- Press Calculate to see the result below the header.
- Use CSV or PDF buttons to save the report.
Example Data Table
| Short Strike | Long Strike | Short Premium | Long Premium | Contracts | Net Credit | Breakeven | Max Loss |
|---|---|---|---|---|---|---|---|
| 95 | 90 | 2.20 | 0.85 | 1 | 132.50 | 93.68 | 367.50 |
| 100 | 95 | 3.10 | 1.45 | 2 | 327.00 | 98.37 | 673.00 |
| 80 | 75 | 1.55 | 0.60 | 3 | 282.50 | 79.06 | 1217.50 |
About This Bull Put Spread Tool
A bull put spread is a defined risk options strategy. It sells a put with a higher strike. It buys another put with a lower strike. The trade usually collects a net credit. Traders use it when they expect price to stay above the short strike. The calculator turns each leg into clear numbers. It shows max profit, max loss, breakeven, payoff, and return on risk.
Why This Strategy Matters
Many option sellers like limited risk. A naked short put can carry large exposure. A bull put spread caps that exposure. The long put protects the downside. The credit received becomes the best possible profit. The spread width minus net credit becomes the core risk. Commissions and fees reduce final results. This tool includes them in every major output.
What The Calculator Checks
The form accepts strike prices, premiums, contracts, multiplier, fees, and expiration price. It also accepts current price, volatility, days to expiry, and risk free rate. These fields help estimate probability. The estimate is only a model output. It is not a promise. Markets can gap, spreads can widen, and assignment can happen early. Use the result as planning support.
Reading The Results
Max profit happens when the underlying closes at or above the short strike. Max loss happens when it closes at or below the long strike. The breakeven equals short strike minus net credit per share. Payoff at expiry changes when price lands between the strikes. Return on risk compares expected credit against defined risk. A higher return may also mean higher assignment danger.
Practical Trading Notes
Always compare reward with distance from price. Check liquidity before entering orders. Wide bid ask spreads can damage fills. Review earnings, dividends, and event dates. A small credit may not justify large downside risk. Position size should match account rules. Export the report for records. Then compare several strike combinations before choosing one.
Final Planning Tip
Do not judge the trade by credit alone. Check how much capital is locked. Compare that figure with possible loss. Review how price behaves near support. Consider closing early when most credit is earned. This can reduce tail risk. It can also free capital for stronger setups.
FAQs
What is a bull put spread?
It is an options credit spread. You sell a higher strike put and buy a lower strike put. The strategy seeks profit when price stays above the short strike.
What is the maximum profit?
Maximum profit is the net credit kept after fees. It occurs when the underlying closes at or above the short put strike at expiration.
What is the maximum loss?
Maximum loss equals spread width minus net credit, adjusted for contracts and multiplier. It happens when price closes at or below the long put strike.
How is breakeven calculated?
Breakeven equals the short put strike minus net credit per share. Fees are included when the calculator converts total credit into per share credit.
Does this calculator include fees?
Yes. Enter total trading fees in the fees field. The calculator subtracts them from credit and includes them in profit, loss, and breakeven results.
What does probability above breakeven mean?
It is a rough model estimate using current price, volatility, time, and rate. It is not guaranteed and should not replace trade judgment.
Can I download the result?
Yes. Use the CSV button for spreadsheet records. Use the PDF button for a simple printable report of the calculated trade metrics.
Is assignment risk included?
The calculator shows the expiration zone. It does not predict early assignment. Traders should review dividends, liquidity, and in the money risk separately.