HRTS Bull Call Spread Strategy
HRTS (Tema Cardiovascular and Metabolic ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Tema Heart & Health ETF (HRTS) is designed to strategically invest in companies poised to benefit from cutting-edge developments within the biotechnology and broader healthcare industries. Its investment mandate specifically targets firms focused on advancing treatments and therapies for cardiovascular health, metabolic disorders, and weight management.
HRTS (Tema Cardiovascular and Metabolic ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $56.0M, a beta of 0.65 versus the broader market, a 52-week range of 28.11-37.82, average daily share volume of 6K, a public-listing history dating back to 2023. These structural characteristics shape how HRTS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.65 indicates HRTS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. HRTS 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 HRTS?
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.
HRTS snapshot
As of August 14, 2026, spot at $37.12, ATM IV 19.70%, IV rank 6.93%, expected move 5.65%. The bull call spread on HRTS 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 HRTS specifically: HRTS IV at 19.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a HRTS bull call spread, with a market-implied 1-standard-deviation move of approximately 5.65% (roughly $2.10 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 HRTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on HRTS should anchor to the underlying notional of $37.12 per share and to the trader's directional view on HRTS etf.
HRTS bull call spread setup
The HRTS 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 HRTS at $37.12 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 HRTS 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 HRTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $37.00 | $1.05 |
| Sell 1 | Call | $39.00 | $0.31 |
HRTS bull call spread risk and reward
- Net Premium / Debit
- -$74.00
- Max Profit (per contract)
- $126.00
- Max Loss (per contract)
- -$74.00
- Breakeven(s)
- $37.74
- Risk / Reward Ratio
- 1.703
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.
HRTS bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on HRTS. 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% | -$74.00 |
| $8.22 | -77.9% | -$74.00 |
| $16.42 | -55.8% | -$74.00 |
| $24.63 | -33.7% | -$74.00 |
| $32.84 | -11.5% | -$74.00 |
| $41.04 | +10.6% | +$126.00 |
| $49.25 | +32.7% | +$126.00 |
| $57.45 | +54.8% | +$126.00 |
| $65.66 | +76.9% | +$126.00 |
| $73.87 | +99.0% | +$126.00 |
When traders use bull call spread on HRTS
Bull call spreads on HRTS reduce the cost of a bullish HRTS etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
HRTS thesis for this bull call spread
The market-implied 1-standard-deviation range for HRTS extends from approximately $35.02 on the downside to $39.22 on the upside. A HRTS bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on HRTS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HRTS IV rank near 6.93% 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 HRTS at 19.70%. As a Financial Services name, HRTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HRTS-specific events.
HRTS 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. HRTS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HRTS alongside the broader basket even when HRTS-specific fundamentals are unchanged. Long-premium structures like a bull call spread on HRTS 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 HRTS chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on HRTS?
- A bull call spread on HRTS is the bull call spread strategy applied to HRTS (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 HRTS etf at $37.12 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed HRTS chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are HRTS 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 HRTS bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 19.70%), the computed maximum profit is $126.00 per contract and the computed maximum loss is -$74.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a HRTS bull call spread?
- The breakeven for the HRTS bull call spread priced on this page is roughly $37.74 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 HRTS market-implied 1-standard-deviation expected move in the same options snapshot is approximately 5.65%; 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 HRTS?
- Bull call spreads on HRTS reduce the cost of a bullish HRTS 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 HRTS implied volatility affect this bull call spread?
- HRTS ATM IV is at 19.70% with IV rank near 6.93%, 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.