SCO Bull Call Spread Strategy
SCO (ProShares - UltraShort Bloomberg Crude Oil), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
ProShares UltraShort Bloomberg Crude Oil is an investment vehicle engineered to deliver daily returns that are twice the inverse of the Bloomberg Commodity Balanced WTI Crude Oil Index's daily performance. This means that, before accounting for fees and expenses, the fund aims to move in the opposite direction of the index's daily changes, at a magnitude of 200%.
SCO (ProShares - UltraShort Bloomberg Crude Oil) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $80.6M, a beta of -2.33 versus the broader market, a 52-week range of 22.84-84.16, average daily share volume of 12.9M, a public-listing history dating back to 2008. These structural characteristics shape how SCO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -2.33 indicates SCO has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bull call spread on SCO?
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 SCO snapshot
As of June 29, 2026, spot at $34.86, ATM IV 68.60%, IV rank 20.33%, expected move 19.67%. The bull call spread on SCO 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 32-day expiry.
Why this bull call spread structure on SCO specifically: SCO IV at 68.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a SCO bull call spread, with a market-implied 1-standard-deviation move of approximately 19.67% (roughly $6.86 on the underlying). The 32-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SCO expiries trade a higher absolute premium for lower per-day decay. Position sizing on SCO should anchor to the underlying notional of $34.86 per share and to the trader's directional view on SCO etf.
SCO bull call spread setup
The SCO 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 SCO near $34.86, the first option leg uses a $35.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SCO chain at a 32-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 SCO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $35.00 | $2.65 |
| Sell 1 | Call | $37.00 | $1.78 |
SCO bull call spread risk and reward
- Net Premium / Debit
- -$87.50
- Max Profit (per contract)
- $112.50
- Max Loss (per contract)
- -$87.50
- Breakeven(s)
- $35.88
- Risk / Reward Ratio
- 1.286
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.
SCO bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on SCO. 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% | -$87.50 |
| $7.72 | -77.9% | -$87.50 |
| $15.42 | -55.8% | -$87.50 |
| $23.13 | -33.6% | -$87.50 |
| $30.84 | -11.5% | -$87.50 |
| $38.54 | +10.6% | +$112.50 |
| $46.25 | +32.7% | +$112.50 |
| $53.96 | +54.8% | +$112.50 |
| $61.66 | +76.9% | +$112.50 |
| $69.37 | +99.0% | +$112.50 |
When traders use bull call spread on SCO
Bull call spreads on SCO reduce the cost of a bullish SCO etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
SCO thesis for this bull call spread
The market-implied 1-standard-deviation range for SCO extends from approximately $28.00 on the downside to $41.72 on the upside. A SCO bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on SCO, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SCO IV rank near 20.33% 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 SCO at 68.60%. As a Financial Services name, SCO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SCO-specific events.
SCO 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. SCO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SCO alongside the broader basket even when SCO-specific fundamentals are unchanged. Long-premium structures like a bull call spread on SCO 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 SCO chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on SCO?
- A bull call spread on SCO is the bull call spread strategy applied to SCO (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 SCO etf trading near $34.86, the strikes shown on this page are snapped to the nearest listed SCO chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SCO 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 SCO bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 68.60%), the computed maximum profit is $112.50 per contract and the computed maximum loss is -$87.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SCO bull call spread?
- The breakeven for the SCO bull call spread priced on this page is roughly $35.88 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 SCO market-implied 1-standard-deviation expected move is approximately 19.67%; 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 SCO?
- Bull call spreads on SCO reduce the cost of a bullish SCO 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 SCO implied volatility affect this bull call spread?
- SCO ATM IV is at 68.60% with IV rank near 20.33%, 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.