Put credit spread calculator
The credit looks easy. The loss is the part people skip. See the most you can make, the most you can lose, and how often you'd need to win just to break even.
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How it works: you sell a put and buy a cheaper put at a lower strike, on the same stock and date. You keep the credit if the stock ends at or above the strike you sold. That credit is the most you can make. The bought put caps the damage below its strike. Most you can lose = (gap between the strikes − credit) × 100 × spreads. Break-even = the strike you sold − the credit. Win rate needed to break even = max loss ÷ (max loss + max gain). Expiry only, fees left out.
Read the max-loss rows first
A put credit spread wins small and loses big. The credit is a few dollars. The loss can be three or four times that. Look at the rows at and below the strike you bought: they all show the same full loss. That's the cap doing its job. It also means one bad month can wipe out several good ones. The break-even win rate tells you how often you have to be right just to stay even. The vertical spreads guide walks through why the math leans this way.
A spread vs a cash-secured put
A cash-secured put sets aside the whole strike × 100. A spread sets aside only the gap between the strikes, minus the credit. So it ties up far less cash. The trade-off: with a spread you never end up owning the shares. If the stock drops, you take the loss and the trade is over. In the wheel strategy, getting the shares is the next step, not the end. A spread skips that step. See short put vs bull put spread.
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