FMAG Bull Call Spread Strategy
FMAG (Fidelity Magellan ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
The fund selectively targets top-tier businesses, encompassing both those that experience robust growth aligned with economic cycles and those exhibiting consistent, stable expansion, aiming to leverage profound, long-lasting societal and economic shifts.
FMAG (Fidelity Magellan ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $266.5M, a beta of 1.12 versus the broader market, a 52-week range of 30.49-37.575, average daily share volume of 21K, a public-listing history dating back to 2021. These structural characteristics shape how FMAG etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.12 places FMAG roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FMAG 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 FMAG?
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.
FMAG snapshot
As of August 14, 2026, spot at $37.16, ATM IV 11.00%, IV rank 0.00%, expected move 3.15%. The bull call spread on FMAG 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 FMAG specifically: FMAG IV at 11.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a FMAG bull call spread, with a market-implied 1-standard-deviation move of approximately 3.15% (roughly $1.17 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 FMAG expiries trade a higher absolute premium for lower per-day decay. Position sizing on FMAG should anchor to the underlying notional of $37.16 per share and to the trader's directional view on FMAG etf.
FMAG bull call spread setup
The FMAG 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 FMAG at $37.16 on that close, the first option leg uses a $37.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FMAG 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 FMAG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $0.97 |
| Sell 1 | Call | $39.00 | $0.26 |
FMAG bull call spread risk and reward
- Net Premium / Debit
- -$71.00
- Max Profit (per contract)
- $129.00
- Max Loss (per contract)
- -$71.00
- Breakeven(s)
- $37.71
- Risk / Reward Ratio
- 1.817
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.
FMAG bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on FMAG. 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% | -$71.00 |
| $8.23 | -77.9% | -$71.00 |
| $16.44 | -55.8% | -$71.00 |
| $24.66 | -33.7% | -$71.00 |
| $32.87 | -11.5% | -$71.00 |
| $41.09 | +10.6% | +$129.00 |
| $49.30 | +32.7% | +$129.00 |
| $57.52 | +54.8% | +$129.00 |
| $65.73 | +76.9% | +$129.00 |
| $73.95 | +99.0% | +$129.00 |
When traders use bull call spread on FMAG
Bull call spreads on FMAG reduce the cost of a bullish FMAG etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
FMAG thesis for this bull call spread
The market-implied 1-standard-deviation range for FMAG extends from approximately $35.99 on the downside to $38.33 on the upside. A FMAG bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on FMAG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FMAG IV rank near 0.00% 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 FMAG at 11.00%. As a Financial Services name, FMAG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FMAG-specific events.
FMAG 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. FMAG positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FMAG alongside the broader basket even when FMAG-specific fundamentals are unchanged. Long-premium structures like a bull call spread on FMAG 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 FMAG chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on FMAG?
- A bull call spread on FMAG is the bull call spread strategy applied to FMAG (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 FMAG etf at $37.16 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed FMAG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are FMAG 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 FMAG bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 11.00%), the computed maximum profit is $129.00 per contract and the computed maximum loss is -$71.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FMAG bull call spread?
- The breakeven for the FMAG bull call spread priced on this page is roughly $37.71 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 FMAG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 3.15%; 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 FMAG?
- Bull call spreads on FMAG reduce the cost of a bullish FMAG 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 FMAG implied volatility affect this bull call spread?
- FMAG ATM IV is at 11.00% with IV rank near 0.00%, 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.