How are MEMX 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 MEMX bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 257.70%), the computed maximum profit is $20.00 per contract and the computed maximum loss is -$180.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a MEMX bull call spread?

The breakeven for the MEMX bull call spread priced on this page is roughly $41.83 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 MEMX market-implied 1-standard-deviation expected move is approximately 73.88%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current MEMX implied volatility affect this bull call spread?

MEMX ATM IV is at 257.70% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.

MEMX Bull Call Spread Strategy

MEMX (Matthews Emerging Markets ex China Active ETF MEMX), in the Financial Services sector, (Asset Management - Global industry), listed on AMEX.

The fund's primary goal is typically met by dedicating at least 80% of its total assets (including any borrowed capital used for investment) to the common and preferred shares of businesses operating in emerging market countries, explicitly excluding China. While the portfolio may include holdings in companies from developed nations or China, a key constraint applies: at the moment of acquisition, the fund cannot buy shares in any company based in a developed country or China if its combined exposure to these regions already exceeds 20% of its assets.

MEMX (Matthews Emerging Markets ex China Active ETF MEMX) trades in the Financial Services sector, specifically Asset Management - Global, with a market capitalization of approximately $49.8M, a beta of 1.18 versus the broader market, a 52-week range of 32.5-51.52, average daily share volume of 3K, a public-listing history dating back to 2023. These structural characteristics shape how MEMX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.18 places MEMX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. MEMX 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 MEMX?

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 MEMX snapshot

As of June 30, 2026, spot at $39.87, ATM IV 257.70%, IV rank 100.00%, expected move 73.88%. The bull call spread on MEMX 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 80-day expiry.

Why this bull call spread structure on MEMX specifically: MEMX IV at 257.70% is rich versus its 1-year range, which makes a premium-buying MEMX bull call spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 73.88% (roughly $29.46 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MEMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on MEMX should anchor to the underlying notional of $39.87 per share and to the trader's directional view on MEMX etf.

MEMX bull call spread setup

The MEMX 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 MEMX near $39.87, the first option leg uses a $40.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MEMX chain at a 80-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 MEMX shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$40.00	$10.30
Sell 1	Call	$42.00	$8.50

MEMX bull call spread risk and reward

Net Premium / Debit: -$180.00
Max Profit (per contract): $20.00
Max Loss (per contract): -$180.00
Breakeven(s): $41.83
Risk / Reward Ratio: 0.111

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.

MEMX bull call spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bull call spread on MEMX. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$180.00
$8.82	-77.9%	-$180.00
$17.64	-55.8%	-$180.00
$26.45	-33.7%	-$180.00
$35.27	-11.5%	-$180.00
$44.08	+10.6%	+$20.00
$52.90	+32.7%	+$20.00
$61.71	+54.8%	+$20.00
$70.52	+76.9%	+$20.00
$79.34	+99.0%	+$20.00

When traders use bull call spread on MEMX

Bull call spreads on MEMX reduce the cost of a bullish MEMX etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.

MEMX thesis for this bull call spread

The market-implied 1-standard-deviation range for MEMX extends from approximately $10.41 on the downside to $69.33 on the upside. A MEMX bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on MEMX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current MEMX IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on MEMX at 257.70%. As a Financial Services name, MEMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MEMX-specific events.

MEMX 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. MEMX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MEMX alongside the broader basket even when MEMX-specific fundamentals are unchanged. Long-premium structures like a bull call spread on MEMX 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 MEMX chain quotes before placing a trade.

Frequently asked questions

What is a bull call spread on MEMX?: A bull call spread on MEMX is the bull call spread strategy applied to MEMX (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 MEMX etf trading near $39.87, the strikes shown on this page are snapped to the nearest listed MEMX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are MEMX 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 MEMX bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 257.70%), the computed maximum profit is $20.00 per contract and the computed maximum loss is -$180.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a MEMX bull call spread?: The breakeven for the MEMX bull call spread priced on this page is roughly $41.83 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 MEMX market-implied 1-standard-deviation expected move is approximately 73.88%; 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 MEMX?: Bull call spreads on MEMX reduce the cost of a bullish MEMX 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 MEMX implied volatility affect this bull call spread?: MEMX ATM IV is at 257.70% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.