FJP Bull Call Spread Strategy
FJP (First Trust Japan AlphaDEX Fund), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The First Trust Japan AlphaDEX Fund is an exchange-traded fund. The investment objective of the Fund is to seek investment results that correspond generally to the price and yield, before the Fund's fees and expenses, of an equity index called the Nasdaq AlphaDEX Japan Index.
FJP (First Trust Japan AlphaDEX Fund) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $254.5M, a beta of 0.83 versus the broader market, a 52-week range of 56.36-82.45, average daily share volume of 13K, a public-listing history dating back to 2011. These structural characteristics shape how FJP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.83 places FJP roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FJP 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 FJP?
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.
Current FJP snapshot
As of May 15, 2026, spot at $77.85, ATM IV 25.20%, IV rank 1.40%, expected move 7.22%. The bull call spread on FJP below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 98-day expiry.
Why this bull call spread structure on FJP specifically: FJP IV at 25.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a FJP bull call spread, with a market-implied 1-standard-deviation move of approximately 7.22% (roughly $5.62 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FJP expiries trade a higher absolute premium for lower per-day decay. Position sizing on FJP should anchor to the underlying notional of $77.85 per share and to the trader's directional view on FJP etf.
FJP bull call spread setup
The FJP bull call spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With FJP near $77.85, the first option leg uses a $78.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FJP chain at a 98-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 FJP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $78.00 | $4.42 |
| Sell 1 | Call | $82.00 | $2.65 |
FJP bull call spread risk and reward
- Net Premium / Debit
- -$177.00
- Max Profit (per contract)
- $223.00
- Max Loss (per contract)
- -$177.00
- Breakeven(s)
- $79.77
- Risk / Reward Ratio
- 1.260
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.
FJP bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on FJP. 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% | -$177.00 |
| $17.22 | -77.9% | -$177.00 |
| $34.43 | -55.8% | -$177.00 |
| $51.65 | -33.7% | -$177.00 |
| $68.86 | -11.6% | -$177.00 |
| $86.07 | +10.6% | +$223.00 |
| $103.28 | +32.7% | +$223.00 |
| $120.49 | +54.8% | +$223.00 |
| $137.71 | +76.9% | +$223.00 |
| $154.92 | +99.0% | +$223.00 |
When traders use bull call spread on FJP
Bull call spreads on FJP reduce the cost of a bullish FJP etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
FJP thesis for this bull call spread
The market-implied 1-standard-deviation range for FJP extends from approximately $72.23 on the downside to $83.47 on the upside. A FJP bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on FJP, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FJP IV rank near 1.40% 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 FJP at 25.20%. As a Financial Services name, FJP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FJP-specific events.
FJP 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. FJP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FJP alongside the broader basket even when FJP-specific fundamentals are unchanged. Long-premium structures like a bull call spread on FJP 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 FJP chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on FJP?
- A bull call spread on FJP is the bull call spread strategy applied to FJP (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 FJP etf trading near $77.85, the strikes shown on this page are snapped to the nearest listed FJP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FJP 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 FJP bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 25.20%), the computed maximum profit is $223.00 per contract and the computed maximum loss is -$177.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FJP bull call spread?
- The breakeven for the FJP bull call spread priced on this page is roughly $79.77 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current FJP market-implied 1-standard-deviation expected move is approximately 7.22%; 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 FJP?
- Bull call spreads on FJP reduce the cost of a bullish FJP 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 FJP implied volatility affect this bull call spread?
- FJP ATM IV is at 25.20% with IV rank near 1.40%, 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.