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 credit
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Maximum profit
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Maximum loss
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Break-even
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Return on risk
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OPTIONS TRADE
MANUAL long call 100 6 / short call 110 2
Expiration
StrategyCREDIT SPREAD
Contracts1 CONTRACT
Net credit▲
MAX PROFIT▲
MAX LOSS▲
OPTIONS TRADE
MANUAL long call 100 6 / short call 110 2
Expiration
StrategyCREDIT SPREAD
Contracts1 CONTRACT
Net credit▲
MAX PROFIT▲
MAX LOSS▲
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 credit spread sells one option and buys a farther out-of-the-money option to define risk while collecting a credit.
How to use it
Choose the correct call or put orientation, then enter the short strike, protective long strike, and net credit. Review the break-even and maximum loss together; the credit alone does not show how much capital is exposed.
Formula, payoff, and assumptions
Maximum profit equals net credit; maximum loss is spread width minus credit; break-even depends on put or call orientation.
The result assumes a defined-risk vertical with the stated width and credit. Broker margin requirements, fills, and assignment handling can differ from the maximum-loss calculation.
Practical example
A $5-wide spread sold for $1.50 has $150 maximum profit and $350 maximum loss per contract before fees.
Reading this result
The short strike and break-even show how much room the underlying has before the position is tested. Return on risk is useful only alongside the size of the possible loss and time to expiration.
Common planning mistake
Avoid comparing credits without normalizing for width. A larger credit can simply mean the short strike is closer to the current price or risk is larger.
Risk and limitations
Losses can accumulate quickly near the short strike. Assignment and early exercise are not included.
