Max Profit/Loss
Result
Payoff Diagram
Bull Put Spread
Bullish strategy: Sell a put with higher strike, buy a put with lower strike. Profit if price stays above short strike.
What does this tool calculate?
The Max Profit/Loss calculator computes the maximum gain and maximum risk for options strategies such as credit spreads, debit spreads, and naked options. It instantly shows how much capital you are risking and what you can earn in the best case — the foundation of every position-sizing decision.
Formula & methodology
| Strategie | Max Gewinn | Max Verlust |
|---|---|---|
| Credit Spread | erhaltener Credit × 100 | (Spread-Breite − Credit) × 100 |
| Debit Spread | (Spread-Breite − Debit) × 100 | gezahlter Debit × 100 |
| Short Put / Short Call | erhaltene Prämie × 100 | unbegrenzt (Short Call) / Strike × 100 (Short Put) |
Worked example
Bull-Put-Spread: Spread-Breite $5, erhaltener Credit $1,50 — Max Gewinn = $1,50 × 100 = $150, Max Verlust = (5,00 − 1,50) × 100 = $350. Das CRV beträgt 150 ÷ 350 ≈ 0,43 — typisch für Credit-Spreads mit hoher Trefferquote.
When do I use it?
Before every options trade: know your maximum risk before entering a position. For credit spreads maximum loss is capped (spread width minus credit). For naked short puts it can approach the full strike value. Use this calculator to plan position size and margin requirements realistically.
Frequently asked questions
Is the calculation the same for every strategy?
No — it depends heavily on the strategy. For credit spreads both profit and loss are defined and capped. For naked short calls maximum loss is theoretically unlimited. For long options (long call, long put) maximum loss equals the premium paid, while profit potential is unlimited upside (long call) or capped at the strike (long put). The calculator covers the most common strategies with their specific formulas.
What happens with early assignment?
American-style options can be exercised at any time. With a bull-put spread: if the short put is assigned (you buy 100 shares), your long put acts as a hedge — your loss stays capped at spread width minus credit received. Exception: if you have already closed the long leg you are unhedged. Assignment is most likely for deep in-the-money options shortly before dividend ex-dates.