A credit spread is placed as a single order with two legs: you sell one option and buy a further out-of-the-money option in the same expiration. The difference between the two premiums is the credit you collect, and the gap between the strikes caps your maximum loss. Below is the generic flow, then the specific order-entry steps for the four brokers most of our members use.

The five steps, on any broker

Check your options approval level. Multi-leg spreads normally require Level 2 / "spreads" approval. Most brokers approve this in a day or two, and you cannot place the trade without it.
Open the options chain for the underlying and choose your expiration. Our examples target 7–30 days to expiration.
Use the strategy builder and select a vertical spread — a put credit spread (bull put spread) if you expect the stock to hold up, a call credit spread (bear call spread) if you expect it to stall or fall.
Set both strikes. Sell the nearer strike, buy the further one. The distance between them is the width, and your maximum loss is that width minus the credit received.
Use a limit order, never a market order. Price it at or near the natural credit and confirm the credit, max loss and breakeven on the review screen before submitting.

How to place a credit spread on Robinhood

On Robinhood the flow is: confirm options approval level, search the ticker, open options trading, open the strategy builder, pick the expiration, set the spread width, choose the two strike prices, enter your contract count, then review and submit. Robinhood shows the net credit and maximum loss on the confirmation screen — check both before you submit. To exit early, reopen the position and place a closing order for a debit lower than the credit you received.

How to place a credit spread on Webull

On Webull: enable options trading on the account first, make sure it is funded, search for the underlying, open the options chain, select the expiration, open the strategy builder, pick the strikes for your spread, then review the trade details and risk profile. Set the order type to limit, enter the number of contracts, and confirm. Webull's risk profile graph is worth reading before submitting — it shows your breakeven and maximum loss visually.

thinkorswim and tastytrade

On thinkorswim, open the Trade tab for the symbol, select the spread type, and build the vertical from the option chain. On tastytrade, the curve and table views both let you select two strikes and route them as one spread order. Both platforms default to sensible limit pricing for multi-leg orders.

Closing the position

You do not have to hold a credit spread to expiration. Our published examples use a fixed exit plan: close at 50% of the credit received, close if the spread doubles in price against you, or close at two days to expiration — whichever happens first. Closing early means buying the spread back for a debit; if that debit is less than the credit you collected, the difference is your profit.

Before you place your first one

Credit spreads are defined-risk, which is not the same as low-risk: the maximum loss is usually several times the credit collected, and short options on US equities can be assigned early, particularly around ex-dividend dates. Read what a credit spread is and our methodology and limitations first, and see the tracked results — including the losing trades.

This is educational content only, not financial advice. Options trading involves substantial risk of loss. See our full disclaimer.