Spreads Strategy Library
Each card shows the expiration payoff shape for a fictional EXMPL setup, the Greeks profile, the limits and what to know about assignment.
Bull call spread (debit)
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| Build | Buy lower call, sell higher call |
| Greeks profile | Positive delta; small net theta and vega that flip sign as price moves through the strikes |
| Max profit | Width − debit |
| Max loss | Debit paid |
| Breakeven | Lower strike + debit |
| Assignment notes | Short call can be assigned early, mainly before ex-dividend. If assigned, exercise the long call or close the spread. |
Bear put spread (debit)
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| Build | Buy higher put, sell lower put |
| Greeks profile | Negative delta |
| Max profit | Width − debit |
| Max loss | Debit paid |
| Breakeven | Higher strike − debit |
| Assignment notes | Short put deep ITM may be assigned early; you can exercise the long put. |
Bull put spread (credit)
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| Build | Sell higher put, buy lower put |
| Greeks profile | Positive delta, positive theta, negative vega |
| Max profit | Credit |
| Max loss | Width − credit |
| Breakeven | Short strike − credit |
| Assignment notes | If price closes between strikes, the short put is assigned and the long expires: you hold shares over the weekend. |
Bear call spread (credit)
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|---|
| Build | Sell lower call, buy higher call |
| Greeks profile | Negative delta, positive theta, negative vega |
| Max profit | Credit |
| Max loss | Width − credit |
| Breakeven | Short strike + credit |
| Assignment notes | Early assignment risk on the short call before ex-dividend dates. |
Iron condor
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| Build | Bull put spread + bear call spread |
| Greeks profile | Near-zero delta, positive theta, negative vega |
| Max profit | Net credit |
| Max loss | Wider wing width − credit |
| Breakeven | Short put − credit; short call + credit |
| Assignment notes | Only one side can finish in the money. Watch pin risk at either short strike. |
Long call butterfly
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| Build | Buy 1 low, sell 2 middle, buy 1 high (calls) |
| Greeks profile | Near-zero delta at center, positive theta near the middle strike, negative vega |
| Max profit | Wing width − debit |
| Max loss | Debit |
| Breakeven | Low strike + debit; high strike − debit |
| Assignment notes | The two short middle calls can be assigned; pin risk is highest at the middle strike. |
Calendar spread
Payoff depends on the back-month option's value when the front month expires, so it has no single expiration chart.
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| Build | Sell near-term, buy longer-term at the same strike |
| Greeks profile | Positive theta, positive vega, near-zero delta at the strike |
| Max profit | Depends on IV of the back month when the front expires |
| Max loss | Debit (roughly) |
| Breakeven | Not fixed: depends on back-month IV |
| Assignment notes | Short front option can be assigned; the back option still covers it. |
Diagonal spread
Payoff depends on the back-month option's value when the front month expires, so it has no single expiration chart.
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| Build | Sell near-term at one strike, buy longer-term at another |
| Greeks profile | Directional delta, positive theta, positive vega |
| Max profit | Depends on back-month value |
| Max loss | Debit (roughly) |
| Breakeven | Not fixed |
| Assignment notes | Like a calendar; a 'poor man's covered call' is a diagonal with a deep ITM long call. |
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