Member tool
Put Credit Spread Visualizer
Sell a put, buy a cheaper put underneath it. You collect less premium — but your worst case is capped from the start. See the full picture here.
Your trade
Type in the numbers from your broker screen. Everything updates as you type.
What the stock is trading at right now.
Enter a stock price above zero.
The higher strike — this is where your profit zone starts.
Enter a strike above zero.
The lower strike — your safety net. Must be below the short strike.
Enter a strike above zero and below the short strike.
What you collect for the whole spread, per share — the short put's bid minus what you pay for the long put (×100 per spread).
Enter a credit of zero or more.
Just the bid on the short strike — used only for the rough chance-of-profit estimate.
Enter a premium of zero or more.
How many days until both options expire.
Enter zero or more days.
Profit / loss at expiry
Per spread, depending on where the stock finishes on expiry day.
How the math worksEvery formula, in one line each
Put Credit Spread Visualizer: questions
Straight answers about the trade this tool maps.
What is a put credit spread?
You sell a put and buy a cheaper put at a lower strike with the same expiry. You collect a net credit, and the long put caps your worst case. It needs far less capital than a cash-secured put, which is why it suits smaller accounts — see put credit spreads for small accounts.
How is the max loss on a put credit spread calculated?
Max loss is the distance between the two strikes, minus the net credit, times 100. Below the long strike the long put pays you back dollar for dollar, so the loss stops growing. You know your worst case before you enter.
How is the breakeven calculated?
Breakeven is the short strike minus the net credit per share. Above the short strike at expiry you keep the full credit; between breakeven and the short strike you keep part of it; below breakeven the spread loses money, up to the capped max loss.
What does return on risk mean?
Return on risk is the max profit divided by the max loss. A spread that collects $100 against $400 of risk has a 25% return on risk. The tool also annualizes it over the days to expiry, which helps you compare spreads with different expiries on the same scale.
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