While covered calls and cash-secured puts form the foundation of most option sellers' income strategies, experienced traders often graduate to multi-leg option spreads that offer defined risk, reduced capital requirements, and strategic flexibility unavailable in single-option positions. Vertical spreads like put credit spreads and call credit spreads limit maximum loss while still collecting premium. Calendar spreads exploit time decay differentials between near-term and longer-dated options on the same underlying security.
The challenge with tracking these multi-leg strategies in most portfolio management systems lies in keeping the related options grouped together while still maintaining visibility into each individual leg's performance. Recording a put credit spread as two separate transactions loses the strategic relationship between the short put collecting premium and the long put providing downside protection. You need to see the combined profit/loss for the entire spread position while retaining the ability to roll individual legs independently when market conditions shift.
MyATMM's cost basis tracking now includes custom strategy templates specifically designed for call spreads, put spreads, and their calendar spread variations, allowing you to record these multi-leg positions with pre-configured templates that automatically group the legs together, calculate combined net credit or debit, track total collateral at risk, and display overall profit/loss for the complete spread while maintaining individual transaction records for each component option.
The custom strategy templates appear in the "New Position" dropdown menu on the cost basis tracking screen, allowing you to select the appropriate template before creating your position record.
To access the custom strategy templates:
The new position dropdown now includes these strategy options:
Each template selection opens a pre-configured position draft with appropriate fields for that specific strategy type, streamlining the data entry process and ensuring you capture all necessary information for accurate tracking.
The strategy templates follow a consistent design pattern where you define the structure of the spread position first in draft form with proposed transactions, then move those proposed transactions down into permanent transaction history once the trades actually execute. This two-stage approach allows you to plan spread positions in advance, verify the net credit or debit and collateral requirements, then record actual fills when your broker executes the orders.
The demonstration walks through creating a put credit spread on Ford (F) stock, illustrating how the put spread template structures the multi-leg position and calculates combined metrics.
After selecting Ford from the symbol list and choosing "Put Spread" from the new position dropdown, the system creates a draft position pre-configured with fields for a two-leg put spread. This template includes:
The demonstration fills in hypothetical spread parameters for illustration purposes:
The demonstration intentionally creates a debit spread (paying more for the long put than received from the short put) for illustrative purposes, though most traders implement put credit spreads where the net is a credit rather than a debit.
After defining the spread structure in the draft position, you record the actual trade execution by moving transactions from proposed status down into permanent transaction history. The demonstration shows this process:
Once both legs move to permanent transaction history, the put credit spread appears in the "Custom Strategy" section rather than in the standard Puts or Calls sections. This separate categorization keeps multi-leg strategies grouped distinctly from single-leg positions.
The custom strategy display shows:
This consolidated view provides instant visibility into the spread's profitability without requiring mental math to combine separate transaction records scattered across different sections.
The demonstration specifically notes that spread strategies don't appear in the portfolio summary's "Shares from Puts" or cost basis calculations because these multi-leg positions don't represent future stock acquisition. In a put credit spread, the long put you purchased acts as collateral protection instead of cash securing the short put, so assignment (while still possible) results in simultaneously exercising your long put to offset the shares acquired from the short put assignment.
This structural difference from cash-secured puts means spread positions exist purely as option plays that will either expire worthless for maximum profit or close at a loss if the underlying moves against you, without normally resulting in long-term stock positions that require cost basis tracking.
The call spread template functions identically to the put spread template with the same structure, field types, and calculation methodology, simply substituting call options for put options.
The demonstration briefly shows the call spread template, noting the only difference is the option type designation. Both templates include:
Call credit spreads serve as the mirror image of put credit spreads, allowing traders to collect premium in neutral to bearish market outlooks. The typical call credit spread involves:
The maximum profit equals the net credit received, while maximum loss equals the strike width minus the net credit, creating a defined-risk position with known parameters before entry.
Calendar spreads (also called horizontal spreads or time spreads) differ from vertical spreads in that the two options share the same strike price but have different expiration dates. This structure exploits the fact that near-term options lose time value faster than longer-dated options, allowing traders to profit from time decay differentials.
The key distinction between vertical spread templates (put spread and call spread) and calendar spread templates lies in expiration date configuration:
The demonstration specifically shows that the calendar put spread template removes the expiration date field from the top of the form because you set expiration dates individually for each option leg within their respective sections.
A calendar put spread typically involves:
Calendar spreads appeal to traders expecting low volatility and minimal price movement, profiting when the underlying stock remains near the strike price through the near-term expiration.
The calendar call spread template mirrors the calendar put spread template with call options instead of puts. This strategy configuration includes:
The demonstration shows the calendar call spread template with the same expiration-per-leg structure, confirming the parallel design between call and put calendar variations.
All multi-leg spread positions created using the custom strategy templates appear in a dedicated "Custom Strategy" section on the cost basis tracking page, separate from the standard Puts and Calls sections used for single-leg positions.
This organizational approach serves multiple purposes:
The demonstration notes you now have access to four new custom strategy types plus the existing iron condor template:
These five template types cover the most common multi-leg option strategies employed by income-focused traders, providing structured tracking for the majority of spread positions beyond basic covered calls and cash-secured puts.
At the portfolio summary level (the top section showing overall account statistics), the demonstration confirms that spread positions don't affect the cost basis or shares calculations because they represent pure option plays rather than stock acquisition strategies. The portfolio summary continues to display:
The spread positions contribute to total premium collected and overall profit/loss calculations but don't create share counts or adjust cost basis figures in the summary metrics.
The demonstration concludes by cleaning up the example spread position and transactions since they were created for instructional purposes on an active account.
To remove a custom strategy position:
The demonstration shows removing the Ford put credit spread that was created for illustration, returning the account to its pre-demonstration state.
If you need to remove individual option transactions rather than entire spread positions:
The demonstration removes the two individual test transactions associated with the spread, showing that both the spread-level position and the component transactions can be managed independently if needed.
When deleting spread positions or transactions, consider these data integrity factors:
Understanding when vertical spreads and calendar spreads make strategic sense helps you select the appropriate template for different market conditions and objectives.
Consider put credit spreads when:
Call credit spreads work well when:
Calendar spreads (both put and call variations) suit these conditions:
Spreads trade specific advantages against single-leg income strategies:
| Factor | Single-Leg (CSP/CC) | Spread Strategies |
|---|---|---|
| Capital Required | Full strike price (CSP) or 100 shares (CC) | Strike width only |
| Maximum Risk | Strike price to zero (CSP) or unlimited (naked) | Defined (strike width minus credit) |
| Premium Collected | Higher absolute premium | Lower net premium (pay for long leg) |
| Assignment Impact | Acquire or deliver shares | Typically close before assignment |
| Management | Simple single-leg rolling | Can roll legs independently |
The custom strategy templates integrate seamlessly with MyATMM's existing cost basis tracking features, maintaining consistency with the platform's overall approach to position management.
Spread strategies follow the same transaction recording methodology as single-leg positions:
Premium collected from spread positions contributes to portfolio-wide metrics:
Spread positions remain organized by ticker symbol just like single-leg positions, allowing you to view all option activity on a specific underlying security regardless of strategy type. This symbol-level organization helps when:
Whether you trade vertical spreads, calendar spreads, iron condors, or all of the above, MyATMM's custom strategy templates provide structured tracking with grouped profit/loss visibility and individual leg management.
Begin using the spread strategy templates by:
The free account provides full access to all custom strategy templates including put spreads, call spreads, calendar spreads, and iron condors, allowing you to evaluate the platform's tracking capabilities before upgrading to unlimited ticker tracking.
Traders running multiple spread positions across numerous underlying securities benefit from membership plans that remove the 3-ticker limit:
Unlimited ticker access allows you to track spread positions across your entire portfolio of dividend aristocrats, ETFs, and specialty positions without worrying about exceeding free account limits.
MyATMM's custom strategy templates extend the platform's position tracking capabilities beyond single-leg covered calls and cash-secured puts into the realm of defined-risk multi-leg spreads.
Custom strategy templates follow the established MyATMM workflow:
Options spread trading involves substantial risk and is not suitable for all investors. Vertical spreads limit both maximum profit (to net credit received) and maximum loss (to strike width minus net credit), but you can still lose the entire capital allocated to the spread if the underlying moves significantly against your position.
Calendar spreads carry assignment risk on the short-term leg while maintaining the longer-term leg, potentially creating undefined positions if not managed properly. All multi-leg strategies incur multiple commission charges (one per leg) and may be difficult to close at favorable prices during high volatility or low liquidity conditions.
Spread strategies are more complex than single-leg options and require understanding of how multiple option legs interact under different market conditions, time decay scenarios, and volatility shifts. Incorrect position construction or management can result in losses exceeding simple option strategies.
This content is for educational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before implementing any options trading strategy, particularly multi-leg strategies with complex risk profiles.
MyATMM's custom strategy templates provide structured tracking for put spreads, call spreads, calendar spreads, and iron condors with combined profit/loss and individual leg management.
Track up to 3 tickers completely free. No credit card required.
Create Your Free AccountJoin option traders using MyATMM to track multi-leg strategies