How are PILL 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 PILL bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 63.30%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a PILL bull call spread?

The breakeven for the PILL bull call spread priced on this page is roughly $18.35 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 PILL market-implied 1-standard-deviation expected move is approximately 18.15%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

PILL ATM IV is at 63.30% with IV rank near 5.80%, 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.

PILL Bull Call Spread Strategy

PILL (Direxion Daily Pharmaceutical & Medical Bull 3X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.

PILL seeks to deliver investment results of 3x the daily performance of the S&P Pharmaceuticals Select Industry Index, a modified equal-weighted index that measures the performance of pharmaceutical companies, as defined by GICS, on the S&P Total Market Index. The fund uses derivatives and swaps to achieve its target exposure. As a levered product with daily resets, PILL is designed as a short-term trading tool and not a long-term investment vehicle. As a result, long-term returns could materially differ from those of the underlying index due to daily compounding. Prior to August 2, 2019, the fund aimed to provide 3x leveraged exposure to the Dynamic Pharmaceutical Intellidex Index. Effective February 27, 2026, the fund replaced the term Shares in its name with ETF.

PILL (Direxion Daily Pharmaceutical & Medical Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $36.5M, a beta of 2.12 versus the broader market, a 52-week range of 5.113-17.61, average daily share volume of 66K, a public-listing history dating back to 2017, approximately 39 full-time employees. These structural characteristics shape how PILL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 2.12 indicates PILL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. PILL 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 PILL?

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 PILL snapshot

As of June 29, 2026, spot at $17.92, ATM IV 63.30%, IV rank 5.80%, expected move 18.15%. The bull call spread on PILL 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 18-day expiry.

Why this bull call spread structure on PILL specifically: PILL IV at 63.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a PILL bull call spread, with a market-implied 1-standard-deviation move of approximately 18.15% (roughly $3.25 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated PILL expiries trade a higher absolute premium for lower per-day decay. Position sizing on PILL should anchor to the underlying notional of $17.92 per share and to the trader's directional view on PILL etf.

PILL bull call spread setup

The PILL 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 PILL near $17.92, the first option leg uses a $18.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed PILL chain at a 18-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 PILL shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$18.00	$0.85
Sell 1	Call	$19.00	$0.50

PILL bull call spread risk and reward

Net Premium / Debit: -$35.00
Max Profit (per contract): $65.00
Max Loss (per contract): -$35.00
Breakeven(s): $18.35
Risk / Reward Ratio: 1.857

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.

PILL bull call spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bull call spread on PILL. 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	-99.9%	-$35.00
$3.97	-77.8%	-$35.00
$7.93	-55.7%	-$35.00
$11.89	-33.6%	-$35.00
$15.85	-11.5%	-$35.00
$19.82	+10.6%	+$65.00
$23.78	+32.7%	+$65.00
$27.74	+54.8%	+$65.00
$31.70	+76.9%	+$65.00
$35.66	+99.0%	+$65.00

When traders use bull call spread on PILL

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

PILL thesis for this bull call spread

The market-implied 1-standard-deviation range for PILL extends from approximately $14.67 on the downside to $21.17 on the upside. A PILL bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on PILL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current PILL IV rank near 5.80% 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 PILL at 63.30%. As a Financial Services name, PILL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to PILL-specific events.

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

Frequently asked questions

What is a bull call spread on PILL?: A bull call spread on PILL is the bull call spread strategy applied to PILL (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 PILL etf trading near $17.92, the strikes shown on this page are snapped to the nearest listed PILL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are PILL 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 PILL bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 63.30%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a PILL bull call spread?: The breakeven for the PILL bull call spread priced on this page is roughly $18.35 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 PILL market-implied 1-standard-deviation expected move is approximately 18.15%; 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 PILL?: Bull call spreads on PILL reduce the cost of a bullish PILL 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 PILL implied volatility affect this bull call spread?: PILL ATM IV is at 63.30% with IV rank near 5.80%, 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.