Choose live Schwab-backed contracts or enter values manually.
Option legs
Shared live selection with manual fallback.
Long leg · long 1×
Short leg · short 1×
Payoff summary
Defined-risk expiration values.
Net debit
$400.00
Maximum profit
$600.00
Maximum loss
$400.00
Break-even
$96.00
Risk / reward
$1.50
OPTIONS TRADE
MANUAL long put 100 6 / short put 110 2
Expiration
StrategyBEAR PUT SPREAD
Contracts1 CONTRACT
Net debit400▲
MAX PROFIT600▲
MAX LOSS400▲
OPTIONS TRADE
MANUAL long put 100 6 / short put 110 2
Expiration
StrategyBEAR PUT SPREAD
Contracts1 CONTRACT
Net debit400▲
MAX PROFIT600▲
MAX LOSS400▲
Methodology and risk
Debit spreads pay a net debit; credit spreads receive a net credit. Strike order must form a defined-risk vertical spread. Values exclude commissions, assignment, and early-exercise risk.
How this calculator works
A bear put spread buys a higher-strike put and sells a lower-strike put with the same expiration.
How to use it
Enter the higher long-put strike, lower short-put strike, and net debit. Compare a downside target with the lower short strike to understand where the capped payoff stops improving.
Formula, payoff, and assumptions
Maximum profit is strike width minus net debit; maximum loss is net debit; break-even is long put strike minus debit.
The spread calculation assumes both puts share an expiration and one contract multiplier. The short put limits the payoff below its strike at expiration.
Practical example
A 110/100 put spread bought for $4 has a $6 maximum payoff per share at or below $100.
Reading this result
The lower short strike defines where the payoff stops improving. Use the break-even to judge the required downside move and the lower strike to judge whether the maximum payoff zone is realistic.
Common planning mistake
Do not choose a spread solely because it has limited risk. A narrow spread can require price to travel further or faster than the underlying’s expected range.
Risk and limitations
Profit is capped below the short strike and the entire debit can be lost if the underlying stays above the long strike.
