The Only Options Calculator That Finds Positive Expected Value Trades

We use a normal log distribution model as after extensive testing we've found this is the most accurate. The EV output is based on holding the trades until option expiry. This is because it's very difficult to predict what the profit/loss on the trade would be if the debit spread was closed before expiry due to implied volatility.

We use debit spreads in this tool because:

1) They most often have better Expected Value than buying naked calls/puts. The only time naked options have better value is if there is an initial pop in the stock where you are able to time it very well. This is more erratic and almost impossible to calculate.

2) Debit spreads are less expensive. It benefits seasoned traders in that you can calculate an edge, while also benefitting newer traders that may not have a large bankroll.

Options changes significantly based on volatility and many other market factors. While today you may see very few results for a stock, the next day you may find a large amount. Continually checking the tool is key to finding good trades.

When it comes to debit spreads, Expected Value is often found in higher payouts, lower risk. Pay attention to market events, if you think volatility in the market is on the horizon, that may help the success rate of the lower chance of profit trades.

Most brokers require options trading approval before you can use certain strategies like debit spreads. New accounts often start at Level 1 or Level 2 options approval, which may not include spreads. Brokers want to make sure traders understand the risks before unlocking advanced strategies.

You'll need to request an options trading level upgrade with your broker. Here's how:

1. Log into your broker's account settings and find the "Options Trading" or "Account Upgrade" section.

2. Complete the options application, which will ask about your:

• Trading experience
• Investment goals
• Risk tolerance
• Income & net worth (for suitability requirements)

3. Select the approval level that includes spreads (often called "Level 3" or "Spread Approval").

4. Wait for approval — it can be instant or take a few business days.

Yes, in most cases. Even though debit spreads have defined risk, brokers typically require a margin account to execute multi-leg options trades. You'll need to:

• Request a margin account upgrade (if you have a cash account)
• Maintain the broker's minimum equity requirement (often $2,000)

Yes — for many beginners, debit spreads are actually safer than buying naked calls or puts because:

• You know your max loss before you enter the trade
• They cost less than buying an option outright
• Time decay (theta) is reduced compared to a single long option

If your current broker doesn't offer spreads, you can:

• Open a free account with a broker that does (e.g., TD Ameritrade, E*TRADE, Fidelity, Interactive Brokers, tastytrade, Robinhood)
• Paper trade debit spreads on our platform until you're approved — this helps you learn the strategy without risking real money

Absolutely. You can:

• Use OptionEV to find high-Expected Value debit spreads and track them in a paper trading account
• Practice building and managing spreads so you're ready to execute them once approved
• Learn how EV impacts your long-term profitability

No tool can guarantee profits. What OptionEV does is identify debit spreads with a statistical edge based on Expected Value. Over time, consistently trading with an edge increases your chances of profitability compared to random or emotion-based trades.