RETL Bull Call Spread Strategy
RETL (Direxion Daily Retail Bull 3X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
The Direxion Daily Retail Bull 3X ETF seeks daily investment results, before fees and expenses, of 300% of the performance of the S&P Retail Select Industry Index. There is no guarantee the fund will achieve its stated investment objective.
RETL (Direxion Daily Retail Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $26.5M, a beta of 4.04 versus the broader market, a 52-week range of 6.72-11.29, average daily share volume of 649K, a public-listing history dating back to 2010. These structural characteristics shape how RETL etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 4.04 indicates RETL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. RETL 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 RETL?
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 RETL snapshot
As of May 15, 2026, spot at $6.84, ATM IV 90.20%, IV rank 15.62%, expected move 25.86%. The bull call spread on RETL 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 34-day expiry.
Why this bull call spread structure on RETL specifically: RETL IV at 90.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a RETL bull call spread, with a market-implied 1-standard-deviation move of approximately 25.86% (roughly $1.77 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RETL expiries trade a higher absolute premium for lower per-day decay. Position sizing on RETL should anchor to the underlying notional of $6.84 per share and to the trader's directional view on RETL etf.
RETL bull call spread setup
The RETL 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 RETL near $6.84, the first option leg uses a $7.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RETL chain at a 34-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 RETL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $7.00 | $0.73 |
| Sell 1 | Call | $7.00 | $0.73 |
RETL bull call spread risk and reward
- Net Premium / Debit
- $0.00
- Max Profit (per contract)
- $0.00
- Max Loss (per contract)
- $0.00
- 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.
RETL bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on RETL. 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 | -99.9% | $0.00 |
| $1.52 | -77.8% | $0.00 |
| $3.03 | -55.7% | $0.00 |
| $4.54 | -33.6% | $0.00 |
| $6.06 | -11.5% | $0.00 |
| $7.57 | +10.6% | $0.00 |
| $9.08 | +32.7% | $0.00 |
| $10.59 | +54.8% | $0.00 |
| $12.10 | +76.9% | $0.00 |
| $13.61 | +99.0% | $0.00 |
When traders use bull call spread on RETL
Bull call spreads on RETL reduce the cost of a bullish RETL etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
RETL thesis for this bull call spread
The market-implied 1-standard-deviation range for RETL extends from approximately $5.07 on the downside to $8.61 on the upside. A RETL bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on RETL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RETL IV rank near 15.62% 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 RETL at 90.20%. As a Financial Services name, RETL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RETL-specific events.
RETL 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. RETL positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RETL alongside the broader basket even when RETL-specific fundamentals are unchanged. Long-premium structures like a bull call spread on RETL 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 RETL chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on RETL?
- A bull call spread on RETL is the bull call spread strategy applied to RETL (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 RETL etf trading near $6.84, the strikes shown on this page are snapped to the nearest listed RETL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RETL 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 RETL bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 90.20%), the computed maximum profit is $0.00 per contract and the computed maximum loss is $0.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RETL bull call spread?
- The breakeven for the RETL 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 RETL market-implied 1-standard-deviation expected move is approximately 25.86%; 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 RETL?
- Bull call spreads on RETL reduce the cost of a bullish RETL 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 RETL implied volatility affect this bull call spread?
- RETL ATM IV is at 90.20% with IV rank near 15.62%, 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.