Option call spread calculator

A lot of people are trading bull put spreads these days so I wanted to share my bull put spread calculator that I use to evaluate these trades.

If you click on the link below you can download my credit spread calculator that can be used for both bull put spreads and bear call spreads.

A bull put spread is a bullish strategy also referred to as a credit spread due to the fact that you receive option premium a credit into your account after placing the trade. Generally most traders will set up their bull put spreads with out-of-the-money puts.

This means that their potential losses are more than the income they are bringing in for placing the trade, but the stock will have to decline, in some cases significantly, before experiencing losses. Brokerages will require you to put up margin for bull put spreads. At most brokerages, this will be equal to the amount of potential losses for the trade. The attached calculator will show you how much margin you will be required to come up with, but you should check with your broker on how they calculate their margin requirements.

Download the Bull Put Spread Calculator.

There are two trading methodologies for placing bull put spreads — trading with the trend and swing trading. Trading with the trend involves identifying a clear uptrend and then selling a bull put spread below recent support levels.

The downside of this method is that in how to make easy money on zynga poker uptrend volatility will be low meaning lower option premiums. As a result, in order to generate the same amount of income from your bull put spreads, you will need to place your option call spread calculator closer to the current stock price.

When swing dungannon livestock mart bull put spreads, you are trading against the trend and trying to as near as possible pick a bottom.

The advantage of this is that if a stock has been falling fast, volatility should swell meaning you can either receive a higher premium OR move further away from the current price. On Dec 30, SPY closed at Option call spread calculator February puts were trading around 2.

Bull Call Spread Explained | Online Option Trading Guide

If you were entering the trade in your brokerage platform as a spread, this is the price you should enter to start with as it is the mid-point of the spread. From there you can drop your price a little depending on how urgently you feel you need to get into the trade.

Otherwise you can leg into the trade by trading each contract separately. The bull put spread calculator also shows you the maximum loss and maximum gain in dollar terms, as well as the potential percentage return if the spread expires worthless. Another feature is that it shows you the percentage decline to your strike prices allowing you to have a good understanding of your risk.

The calculator will do the rest. I use this calculator every time I enter a bull put spread, a bear call spread or an iron condor. Download it and give it a go.

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I hope you find it useful! As always, if you have any questions, just drop me a line. Also do u have calculator for Bull call spread and bear Put calculator and explanation of when can u use them thanks.

Bull Put Spread Calculator

Today after paper-trading for a time placed my first Bear CALL Spread on CBI Mkt Value I input the above in your Spread Calculator and the obvious Max.

Gain was apparent but all the other percentages and rationale I exhausted to arrive at the same or even close.

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