Start with IV regime, not just direction
Credit spreads are usually stronger when implied volatility is relatively high and you're being paid for selling premium. In low-IV regimes, the credit can be too thin for the risk you're taking.
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Credit Spread Calculator
Pick bull put or bear call, enter the two strikes and net credit, and read max profit, max loss, break-even, and risk-to-reward in seconds. Use this when your edge is premium collection, not a big directional move.
Credit spreads collect small premium and can give back many multiples of it. Knowing the math before clicking confirm is the discipline.
MindTrajour_CreditSpread
When credit spreads make sense
Use these three checks before you sell premium.
Match strategy to thesis
Credit spreads fit range-to-moderate directional views where you want time decay to help. If your thesis is a stronger directional move, a debit spread is often a cleaner fit.
Defined risk still needs operational discipline
Max loss is defined, but short-leg assignment risk still exists, especially near expiration and around ex-dividend on short calls. Check margin requirements and have an exit rule before entry.
From single trade to repeatable edge
Sizing one credit spread is easy. Knowing whether they pay across 100 trades is what matters.
Log every credit spread in MindTrajour and the journal will show whether your bull-put and bear-call playbooks have actually been profitable — broken down by IV regime and DTE.
No credit card required • Cancel anytime
Keep stacking your edge
Other calculators traders pair with this one.
options
Debit Spread Calculator
Pick bull call or bear put, enter strikes and net debit, and get max profit, max loss, break-even, and payoff shape in one read. Use this when you expect a directional move and want defined risk.
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Iron Condor Calculator
Punch in your four strikes, the net credit, and the number of contracts. We give you back the max profit, max loss, both break-evens, and a payoff diagram that shows exactly where the trade lives or dies.
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Probability of Profit Calculator
Pick a method — delta-based for a quick estimate, IV-based for a sharper one — and the calculator returns the probability the trade is profitable at expiration. Both methods exist for a reason; using both is how serious option traders cross-check.
Open toolFrequently asked questions
Everything you need to know before sizing your next trade.