AVMA Bull Call Spread Strategy
AVMA (Avantis Moderate Allocation ETF 9), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.
The Avantis Moderate Allocation ETF 9 utilizes a strategic investment approach to provide extensive market exposure, with a particular focus on assets anticipated to deliver superior returns. It achieves this by investing in a range of other Avantis exchange-traded funds (ETFs) across both equity and fixed income markets. While it seeks to capture the benefits often found in indexing, like broad diversification, low turnover rates, and clear exposure, it also incorporates an active element, making investment choices informed by current market pricing to add value. The fund is managed through an efficient portfolio and trading process, specifically designed to optimize returns while minimizing unneeded risks and trading costs. Overall, this strategy aims to offer investors an effective and comprehensive allocation across the entire market landscape.
AVMA (Avantis Moderate Allocation ETF 9) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $47.8M, a beta of 0.91 versus the broader market, a 52-week range of 63.01-74.18, average daily share volume of 7K, a public-listing history dating back to 2023. These structural characteristics shape how AVMA etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places AVMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. AVMA pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bull call spread on AVMA?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
AVMA snapshot
As of August 14, 2026, spot at $75.53, ATM IV 10.60%, IV rank 0.94%, expected move 3.04%. The bull call spread on AVMA below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bull call spread structure on AVMA specifically: AVMA IV at 10.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a AVMA bull call spread, with a market-implied 1-standard-deviation move of approximately 3.04% (roughly $2.30 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated AVMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on AVMA should anchor to the underlying notional of $75.53 per share and to the trader's directional view on AVMA etf.
AVMA bull call spread setup
The AVMA bull call spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With AVMA at $75.53 on that close, the first option leg uses a $76.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed AVMA chain at a 35-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 AVMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $76.00 | $0.89 |
| Sell 1 | Call | $79.00 | $0.17 |
AVMA bull call spread risk and reward
- Net Premium / Debit
- -$72.00
- Max Profit (per contract)
- $228.00
- Max Loss (per contract)
- -$72.00
- Breakeven(s)
- $76.72
- Risk / Reward Ratio
- 3.167
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit.
AVMA bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on AVMA. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$72.00 |
| $16.71 | -77.9% | -$72.00 |
| $33.41 | -55.8% | -$72.00 |
| $50.11 | -33.7% | -$72.00 |
| $66.81 | -11.6% | -$72.00 |
| $83.50 | +10.6% | +$228.00 |
| $100.20 | +32.7% | +$228.00 |
| $116.90 | +54.8% | +$228.00 |
| $133.60 | +76.9% | +$228.00 |
| $150.30 | +99.0% | +$228.00 |
When traders use bull call spread on AVMA
Bull call spreads on AVMA reduce the cost of a bullish AVMA etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
AVMA thesis for this bull call spread
The market-implied 1-standard-deviation range for AVMA extends from approximately $73.23 on the downside to $77.83 on the upside. A AVMA bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on AVMA, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current AVMA IV rank near 0.94% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on AVMA at 10.60%. As a Financial Services name, AVMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to AVMA-specific events.
AVMA bull call spread positions are structurally moderately bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. AVMA positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move AVMA alongside the broader basket even when AVMA-specific fundamentals are unchanged. Long-premium structures like a bull call spread on AVMA are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current AVMA chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on AVMA?
- A bull call spread on AVMA is the bull call spread strategy applied to AVMA (etf). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With AVMA etf at $75.53 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed AVMA chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are AVMA bull call spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit. For the AVMA bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 10.60%), the computed maximum profit is $228.00 per contract and the computed maximum loss is -$72.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a AVMA bull call spread?
- The breakeven for the AVMA bull call spread priced on this page is roughly $76.72 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The AVMA market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.04%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on AVMA?
- Bull call spreads on AVMA reduce the cost of a bullish AVMA etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current AVMA implied volatility affect this bull call spread?
- AVMA ATM IV is at 10.60% with IV rank near 0.94%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.