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University
Simulation Lab

Put Credit Spread simulator

The defined-risk version of selling a put. Widen the spread and watch the credit rise alongside the maximum loss. The trade-off that decides how these are sized.

Course catalogue99 lessons

The spread

$5.00
$1.50
30 days

Payoff at expiration

Note where the line goes flat on the left. That floor is the long $90 put doing its job, without it the line keeps going.

Pick an outcome

$100.00

+$150

Both legs expire worthless. You keep the full $150 credit. The best case, and the only one where nothing is settled.

The numbers

Max profit$150
Max loss$350
Breakeven$93.50
Collateral$350
Return on risk42.9%
Cash-secured equivalent$9,500

A cash-secured put at the same strike would tie up $9,500. This spread requires $350, the same directional view for a fraction of the capital, in exchange for capping the profit at the credit.

The theory behind it

This simulator models outcomes at expiration from the inputs you supply. It fetches no market data, and the prices you type are not quotes. Real results differ: assignment can happen early, spreads and commissions are charged on every leg, and a position rarely travels in a straight line to the outcome shown.