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Debit spread vs credit spread: what changes on the same two strikes?

Put a bull call debit spread and a bull put credit spread on the same two strikes and their payoffs come out almost the same. The real differences are which way the cash moves on day one, which leg can be assigned, and whether doing nothing at expiry wins or loses.

Comparison · 7-minute read · Updated 2026-11-09

The short answer

On the same two strikes, a debit spread and a credit spread pointed the same way are close to the same trade. A bull call spread (you pay) and a bull put spread (you get paid) have nearly the same max gain, max loss and break-even. Option prices are linked that way.

So don't choose by "I'd rather be paid." Choose by the details:

• Credit spread: wins by doing nothing if the stock stays above both strikes. The short put can be assigned early if it goes deep in the money.
• Debit spread: loses by doing nothing if the stock stays below both strikes, which is simple. To collect a full win, you usually have to close it or deal with exercise.

Side by side

A worked example (hypothetical)

Alder Bay Mining, a made-up stock, trades near $46.50. Both spreads use the $45 and $50 strikes and expire in 45 days.

• Bull call spread: buy the $45 call, sell the $50 call. Debit: $2.00, or $200.
• Bull put spread: sell the $50 put, buy the $45 put. Credit: $3.00, or $300.

Notice $2.00 + $3.00 = $5.00, the width. That's the link between them.

The math, two ways each:

• Debit spread: max gain = ($5 − $2) × 100 = $300. Max loss = the debit, $200. Break-even = $45 + $2 = $47.
• Credit spread: max gain = the credit, $300. Max loss = ($5 × 100) − $300 = $200. Break-even = $50 − $3 = $47.

The capital is the same too. The debit spread costs $200. The credit spread brings in $300, but your broker holds the $500 width, so your buying power still drops by $200.

The move against both

Ten days in, bad news. Alder Bay drops to $44, below both strikes.

Both spreads now show about the same loss on paper, roughly −$90, because the same link holds mid-trade. Neither one protects you better.

The stock keeps sliding and finishes at $42. Both lose their full $200. The difference is what that looks like:

• Debit spread: both calls expire worthless. Nothing happens. You lost the $200 you paid.
• Credit spread: both puts are in the money. You're assigned 100 shares at $50 and your $45 put is exercised to sell them. The two cancel out and you lose the $200: $500 between the strikes, minus the $300 credit. If anything goes wrong with the long put, like a broker not exercising it, you could be left holding shares over a weekend.

At $44 the credit spread's short $50 put is $6 in the money, and a put that deep can be assigned early. That's a hassle, not extra loss, as long as the long put is still there. What happens when a credit spread is assigned early walks through it.

The Friday between the strikes

If Alder Bay ends at $47, between the strikes, both trades break even, but both leave you holding stock if you don't close:

• Debit spread: your $45 call exercises and you buy 100 shares at $45. You need $4,500. Your effective price is $45 + $2 = $47.
• Credit spread: your $50 put is assigned and you buy 100 shares at $50. You need $5,000. Your effective price is $50 − $3 = $47.

Same shares, same effective price, same weekend risk. Close before the bell. Credit spread expires between strikes covers what to do.

Pick a debit spread if… pick a credit spread if…

Already sell puts? Short put vs bull put spread shows what the long put changes. Deciding which side to sell? Read bull put spread vs bear call spread. The four types are in vertical spreads explained, and every strategy is in the options strategy comparison chart. Run your own strikes in the credit spread calculator.

Spreads need a higher options approval level at most brokers, and in Canada not every broker allows them in a TFSA or RRSP. Check yours.

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