What are options spreads?
An options spread involves buying and selling two options on the same underlying stock simultaneously. Spreads define your maximum profit and maximum loss upfront — making risk management clear and precise. Credit spreads collect premium immediately; debit spreads pay premium for a defined-risk directional bet.
The most common spreads are vertical spreads: bull put spreads (bullish credit), bear call spreads (bearish credit), bull call spreads (bullish debit), and bear put spreads (bearish debit). Iron condors combine a bull put and bear call spread for a neutral, range-bound strategy.
How this tracker works
TraderVoila's Spread Tracker calculates your max profit, max loss, breakeven price, and risk/reward ratio automatically from the strikes and premium you enter. Log a spread in seconds, track expiration countdowns, and close trades as expired, closed for profit, or stopped out.
Your dashboard shows total realized P&L, win rate across all spread types, and at-risk capital across open positions. Create a free account to sync your trades across all your devices.
Credit spread tips
- Sell at the 0.30 delta. This gives roughly a 70% probability of expiring worthless while collecting meaningful premium.
- Keep spread width consistent. Wider spreads mean higher premiums but higher risk. $5 wide on a $50 stock is very different from $5 wide on a $500 stock.
- Close at 50% profit. Many traders close credit spreads when they've captured half the premium, freeing capital for the next trade.
- Define your max loss before entry. Credit spreads cap your loss — know that number and size positions so a max loss is manageable.