Bull Put Spread
Computes the outcome of a bull put spread: selling a higher-strike put and buying a lower-strike put, collecting a credit. It's a bullish (or neutral) bet that pockets the premium with risk capped by the bought put. The tool returns the credit received (maximum profit), the maximum loss and the breakeven. Enter the two strikes and the respective put premiums.
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Bull Put Spread
Computes the outcome of a bull put spread: selling a higher-strike put and buying a lower-strike put, collecting a credit. It's a bullish (or neutral) bet that pockets the premium with risk capped by the bought put. The tool returns the credit received (maximum profit), the maximum loss and the breakeven. Enter the two strikes and the respective put premiums.
Collecting premium betting it won't fall
The bull put spread is the seller's version of the bullish bet. Instead of buying a call, you sell a higher-strike put and buy a lower-strike one as insurance, pocketing the premium gap right away. If the asset stays above the sold strike until expiry, both puts expire worthless and the credit is yours.
The put bought down low is what makes the strategy safe: it caps the loss if the asset plunges, unlike a naked short put, which carries huge risk. The maximum profit is the credit received; the maximum loss is the width between the strikes minus that credit. It's income for rising or sideways markets.
Enter the two strikes and the put premiums. The tool returns the credit received, the maximum profit, the maximum loss and the breakeven, below which the position starts to lose. Compare the credit with the potential loss: bull put spreads tend to have a high probability of success but a loss bigger than the gain when they're wrong.
Related Tools
Bear Put Spread
Computes the outcome of a bear put spread: buying a higher-strike put and selling a lower-strike put, paying a debit. It's a bearish bet with limited risk and cost — cheaper than buying the put alone, in exchange for a capped profit. The tool returns the cost (debit), the maximum profit, the maximum loss and the breakeven. Enter the two strikes and the respective put premiums.
Calendar Spread
Computes the net debit of a calendar spread, also called a horizontal spread: selling a short-dated option and buying a longer-dated one at the same strike. The strategy exploits the fact that the short option loses value to time (theta) faster than the longer one. The result is the cost of setting up the position. Enter the premium of the short option sold and that of the long option bought.
Iron Condor
Computes the outcome of an iron condor: selling a put spread and a call spread at the same time, collecting a net credit. It's the classic strategy for betting the asset will trade sideways while pocketing the premium with limited risk. The tool uses the credit received and the four strikes to return the maximum profit (the credit itself), the maximum loss and the two breakeven points. Enter the four strikes and the net credit received.
Long Call Condor
Computes the outcome of a long call condor: buy one low-strike call, sell two middle-strike calls and buy one high-strike call. It's a cousin of the butterfly with a wider profit zone: you bet the asset will stay within a range rather than land exactly on a point. The tool returns the net cost, the maximum profit, the maximum loss and the two breakeven points. Enter the four strikes and the four call premiums.
Protective Put
Computes the outcome of a protective put: holding a stock and buying a put as insurance against a fall. The put sets a floor on the loss but costs the premium, which raises the breakeven. It's the most direct insurance for a long position: the upside stays unlimited, the downside is capped. The tool returns the maximum loss and the breakeven. Enter the stock price, the put strike and the premium paid.
Collar (Protective Collar)
Computes the outcome of a collar: holding a stock, buying a put as a protective floor and selling a call as a ceiling, using the call premium to fund the put. It's the cheap way to protect a gain without closing the position — in exchange, you give up the upside above the ceiling. The tool returns the net option cost, the maximum profit, the maximum loss and the breakeven. Enter the stock price, the put and call strikes and the two premiums.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.