Repair Spread Calculator
This Calulator is for when you are underwater in shares you were assigned in a Put. This allows you to lower your cost basis and get out even or slightly ahead essentially saving time.
Stock Repair / 1×2 Ratio Call Spread Calculator
Repair underwater Wheel positions (e.g., BITX) using a 1×2 call ratio spread overlay.
How to use this:
1) Enter your shares owned and share cost basis (what you paid per share).
2) Enter the long call strike & total premium (what you pay per contract).
3) Enter the short call strike & total premium (what you collect per contract). The calculator assumes you sell 2 short calls for each 1 long call (1×2 ratio).
4) Set # of spreads: 1 spread = 1 long call + 2 short calls = 100 shares covered. For 1000 shares, 10 spreads fully overlay the position.
5) Optionally enter a price at expiration (e.g., 37) to see total P/L and implied breakeven for that scenario.
Important: Premiums are entered as the total dollar amount per contract as shown in your broker fills (e.g., 4950, not 49.50). This is an educational tool only, not tax or financial advice.
1) Enter your shares owned and share cost basis (what you paid per share).
2) Enter the long call strike & total premium (what you pay per contract).
3) Enter the short call strike & total premium (what you collect per contract). The calculator assumes you sell 2 short calls for each 1 long call (1×2 ratio).
4) Set # of spreads: 1 spread = 1 long call + 2 short calls = 100 shares covered. For 1000 shares, 10 spreads fully overlay the position.
5) Optionally enter a price at expiration (e.g., 37) to see total P/L and implied breakeven for that scenario.
Important: Premiums are entered as the total dollar amount per contract as shown in your broker fills (e.g., 4950, not 49.50). This is an educational tool only, not tax or financial advice.
Fill in the fields and click Calculate Repair Impact to see your net credit, effective cost basis, and scenario P/L.
