A vertical bought for a debit, with calls or puts: the cost, the most it can make, the breakeven and the reward against the risk.
| Price at expiry | Profit or loss at expiry |
|---|---|
| $91.20 | -$380.00 |
| $100.00 | -$380.00 |
| $103.80 | -$0.00 |
| $110.00 | $620.00 |
| $118.80 | $620.00 |
A debit spread buys one option and sells a further out of the money one of the same type and expiry. The sold option pays for part of the bought one and caps the gain at the width between the strikes.
The most it can lose is what it cost. At expiry it is worth the full width beyond the short strike and nothing short of the long strike, with a straight line between.
Credit spread calculator · every calculator
Every price here is one you typed; nothing is fetched and nothing is stored. The numbers travel in the address of this page, so a result can be linked to. Results are at expiry for one structure, before commissions and fees, and assume no early assignment. An illustration of the arithmetic, not advice.