FUTY Bull Call Spread Strategy
FUTY (Fidelity MSCI Utilities Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Tracks the performance of the MSCI USA IMI Utilities 25/50 Index.
FUTY (Fidelity MSCI Utilities Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.43B, a beta of 0.59 versus the broader market, a 52-week range of 51.05-61.51, average daily share volume of 363K, a public-listing history dating back to 2013. These structural characteristics shape how FUTY etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.59 indicates FUTY has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. FUTY 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 FUTY?
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 FUTY snapshot
As of May 14, 2026, spot at $57.98, ATM IV 23.70%, IV rank 32.90%, expected move 6.79%. The bull call spread on FUTY 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 35-day expiry.
Why this bull call spread structure on FUTY specifically: FUTY IV at 23.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 6.79% (roughly $3.94 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 FUTY expiries trade a higher absolute premium for lower per-day decay. Position sizing on FUTY should anchor to the underlying notional of $57.98 per share and to the trader's directional view on FUTY etf.
FUTY bull call spread setup
The FUTY 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 FUTY near $57.98, the first option leg uses a $57.98 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FUTY 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 FUTY shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $57.98 | N/A |
| Sell 1 | Call | $60.88 | N/A |
FUTY bull call spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
FUTY bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on FUTY. 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.
When traders use bull call spread on FUTY
Bull call spreads on FUTY reduce the cost of a bullish FUTY etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
FUTY thesis for this bull call spread
The market-implied 1-standard-deviation range for FUTY extends from approximately $54.04 on the downside to $61.92 on the upside. A FUTY bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on FUTY, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FUTY IV rank near 32.90% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on FUTY should anchor more to the directional view and the expected-move geometry. As a Financial Services name, FUTY options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FUTY-specific events.
FUTY 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. FUTY positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FUTY alongside the broader basket even when FUTY-specific fundamentals are unchanged. Long-premium structures like a bull call spread on FUTY 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 FUTY chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on FUTY?
- A bull call spread on FUTY is the bull call spread strategy applied to FUTY (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 FUTY etf trading near $57.98, the strikes shown on this page are snapped to the nearest listed FUTY chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FUTY 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 FUTY bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 23.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FUTY bull call spread?
- The breakeven for the FUTY bull call spread priced on this page is no defined breakeven on the modeled curve 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 FUTY market-implied 1-standard-deviation expected move is approximately 6.79%; 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 FUTY?
- Bull call spreads on FUTY reduce the cost of a bullish FUTY 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 FUTY implied volatility affect this bull call spread?
- FUTY ATM IV is at 23.70% with IV rank near 32.90%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.