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Vertical Options Spread Expiry Payoff

Compare bull and bear call or put spreads with signed cash flow, expiry break-even and strike-bound payoff.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

One bull call spread buying strike 100 for 7 and selling strike 110 for 2 costs 500. At expiry price 108 it earns 300; maximum profit is 500 and break-even is 105.

Expiry profit = sum(long intrinsic − long premium + short premium − short intrinsic) × 100 × contracts.

Worked example

Enter these known values and leave the other values blank.

Your target price at expiration
108 USD
Amount of options you will trade
1
Strike price of the call you buy
100 USD
Premium spent for buying the call
7 USD
Strike price of the call you sell
110 USD
Premium received for selling the call
2 USD
Net debit spread
-5 USD
Maximum loss
-500 USD
Maximum profit
500 USD
Breakeven price
105 USD
Potential profit
300 USD

Assumptions and limitations

  • Assumes matched expiry and 100 underlying units per contract. Fees, early exercise, assignment risk and changes before expiry are excluded.
  • The interior payoff result appears only between the strikes. Outside the interval, conditional notes identify maximum gain or loss; negative loss values are signed cash flow.
  • Enter all monetary amounts in a single currency. Retained currency conversion factors are a captured static snapshot, not live exchange rates.
  • Clear a known field before solving for it. Locks retain chosen inputs; inconsistent locked values need correction. Reset restores the captured defaults.

Common questions

What does the worked example show?

One bull call spread buying strike 100 for 7 and selling strike 110 for 2 costs 500. At expiry price 108 it earns 300; maximum profit is 500 and break-even is 105.

What assumptions limit this calculation?

Assumes matched expiry and 100 underlying units per contract. Fees, early exercise, assignment risk and changes before expiry are excluded.

References

Use the documented finite scenario domain. Spread count must be a positive integer. tp cannot be negative. Integer membership is checked with isInteger, so ordinary, tiny and large fractional counts are rejected even when tolerant floor equality would pass.

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