KOMP Bull Call Spread Strategy
KOMP (State Street SPDR S&P Kensho New Economies Composite ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The State Street SPDR S&P Kensho New Economies Composite ETF seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Kensho New Economies Composite Index (the "Index")Seeks to track an index utilizing artificial intelligence and a quantitative weighting methodology to pursue the potential of a new economy fueled by innovative companies disrupting traditional industries by leveraging advancements in exponential processing power, artificial intelligence, robotics, and automationMay provide an effective way to pursue long-term growth potential by targeting companies within the sectors driving innovation within the new economy
KOMP (State Street SPDR S&P Kensho New Economies Composite ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $2.66B, a beta of 1.58 versus the broader market, a 52-week range of 49.13-69.53, average daily share volume of 74K, a public-listing history dating back to 2018. These structural characteristics shape how KOMP etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.58 indicates KOMP has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. KOMP 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 KOMP?
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 KOMP snapshot
As of May 15, 2026, spot at $68.13, ATM IV 26.70%, IV rank 5.63%, expected move 7.65%. The bull call spread on KOMP 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 KOMP specifically: KOMP IV at 26.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a KOMP bull call spread, with a market-implied 1-standard-deviation move of approximately 7.65% (roughly $5.22 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 KOMP expiries trade a higher absolute premium for lower per-day decay. Position sizing on KOMP should anchor to the underlying notional of $68.13 per share and to the trader's directional view on KOMP etf.
KOMP bull call spread setup
The KOMP 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 KOMP near $68.13, the first option leg uses a $68.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KOMP 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 KOMP shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $68.00 | $3.70 |
| Sell 1 | Call | $70.00 | $2.85 |
KOMP bull call spread risk and reward
- Net Premium / Debit
- -$85.00
- Max Profit (per contract)
- $115.00
- Max Loss (per contract)
- -$85.00
- Breakeven(s)
- $68.85
- Risk / Reward Ratio
- 1.353
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.
KOMP bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on KOMP. 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% | -$85.00 |
| $15.07 | -77.9% | -$85.00 |
| $30.14 | -55.8% | -$85.00 |
| $45.20 | -33.7% | -$85.00 |
| $60.26 | -11.5% | -$85.00 |
| $75.32 | +10.6% | +$115.00 |
| $90.39 | +32.7% | +$115.00 |
| $105.45 | +54.8% | +$115.00 |
| $120.51 | +76.9% | +$115.00 |
| $135.58 | +99.0% | +$115.00 |
When traders use bull call spread on KOMP
Bull call spreads on KOMP reduce the cost of a bullish KOMP etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
KOMP thesis for this bull call spread
The market-implied 1-standard-deviation range for KOMP extends from approximately $62.91 on the downside to $73.35 on the upside. A KOMP bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on KOMP, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KOMP IV rank near 5.63% 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 KOMP at 26.70%. As a Financial Services name, KOMP options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KOMP-specific events.
KOMP 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. KOMP positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KOMP alongside the broader basket even when KOMP-specific fundamentals are unchanged. Long-premium structures like a bull call spread on KOMP 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 KOMP chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on KOMP?
- A bull call spread on KOMP is the bull call spread strategy applied to KOMP (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 KOMP etf trading near $68.13, the strikes shown on this page are snapped to the nearest listed KOMP chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KOMP 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 KOMP bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 26.70%), the computed maximum profit is $115.00 per contract and the computed maximum loss is -$85.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KOMP bull call spread?
- The breakeven for the KOMP bull call spread priced on this page is roughly $68.85 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 KOMP market-implied 1-standard-deviation expected move is approximately 7.65%; 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 KOMP?
- Bull call spreads on KOMP reduce the cost of a bullish KOMP 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 KOMP implied volatility affect this bull call spread?
- KOMP ATM IV is at 26.70% with IV rank near 5.63%, 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.