Options strategy tool · SPY & QQQ

Bull put spread calculator: credit, max loss, breakeven and probability of profit

Sell a put, buy a lower-strike put in the same expiration. You collect a net credit and keep it if price stays above the short strike at expiration; risk is the strike gap minus the credit.

Underlying Price

Edit to the current price.

Days to expiration Implied volatility %

Contracts Premiums Use my own prices

Net—

Max profit—

Max loss—

Breakeven(s)—

Chance of profit*—

Reward : risk—

Price at expiration — → P/L —

At expirationEstimated value todayCurrent price

*Model estimate of finishing profitable at expiration, using a lognormal price distribution from the implied volatility above. Ignores skew, dividends and early assignment.

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How a bull put spread is built

Sell a put at a higher strike (K2) and buy a put at a lower strike (K1), same expiration.

Max profit: Net credit receivedMax loss: (K2 − K1) − net creditBreakeven: K2 − net credit

Example. SPY near 775: sell the 770 put, buy the 765 put for a $1.20 credit. Max profit $120; max loss (770 − 765 − 1.20) × 100 = $380; breakeven $768.80 (illustrative numbers).

Benefits

You are paid up front and time decay works in your favor.
Can be profitable if price rises, goes sideways or even falls a little.
Defined risk through the long put.
Higher probability of profit than an equivalent debit spread, because price only has to stay above the breakeven.

Risks and trade-offs

Max loss is usually larger than max profit.
A sharp drop through both strikes produces the full loss.
Higher implied volatility or a gap lower hurts.
The short put can be assigned early, especially if it goes in the money near an ex-dividend date.

When traders use it

Traders consider a put credit spread when they expect price to hold above a level (such as a support area) through expiration and want to be paid for that view with defined risk.

SPY and QQQ specifics

SPY and QQQ options are American-style, so short legs can be assigned before expiration, particularly when they are in the money or ahead of an ex-dividend date. Both have very liquid option chains, tight bid/ask spreads and expirations every trading day, which matters for multi-leg strategies where each leg adds slippage. Strikes are in $1 increments near the money. Check current implied volatility and liquidity before relying on any estimate here.

Frequently asked questions

What is a bull put spread?

Also called a put credit spread: sell a higher-strike put and buy a lower-strike put, same expiration, for a net credit. It profits if the underlying stays above the short strike.

What is the max loss on a bull put spread?

The strike gap minus the credit received, times 100 per contract.

What is the breakeven on a put credit spread?

The short put strike minus the net credit.

Why does the credit spread have a higher win rate?

Because price can rise, move sideways or fall slightly and the trade still profits. The trade-off is a larger loss when it is wrong.

Know the map before you choose the contract.

The overnight ES/NQ structure, key levels and catalysts, in SPY and QQQ terms, before the 9:30 ET open.

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Educational payoff arithmetic only. Premiums are model estimates (Black-Scholes, no dividends or skew) unless you enter your own, and real fills, commissions and early assignment will differ. Options involve risk and are not suitable for all investors. LiquidityLevels provides educational market commentary, not financial advice or a recommendation to trade any strategy.