SOXS Bull Call Spread Strategy
SOXS (Direxion Daily Semiconductor Bear 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The Direxion Daily Semiconductor Bull and Bear 3X ETFs seek daily investment results, before fees and expenses, of 300%, or 300% of the inverse (or opposite), of the performance of the NYSE Semiconductor Index. There is no guarantee the funds will achieve their stated investment objectives.
SOXS (Direxion Daily Semiconductor Bear 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $265.1M, a beta of -4.35 versus the broader market, a 52-week range of 8.14-280.2, average daily share volume of 95.2M, a public-listing history dating back to 2010. These structural characteristics shape how SOXS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of -4.35 indicates SOXS has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. SOXS 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 SOXS?
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 SOXS snapshot
As of May 15, 2026, spot at $9.09, ATM IV 147.01%, IV rank 54.25%, expected move 42.15%. The bull call spread on SOXS 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 28-day expiry.
Why this bull call spread structure on SOXS specifically: SOXS IV at 147.01% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 42.15% (roughly $3.83 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SOXS expiries trade a higher absolute premium for lower per-day decay. Position sizing on SOXS should anchor to the underlying notional of $9.09 per share and to the trader's directional view on SOXS etf.
SOXS bull call spread setup
The SOXS 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 SOXS near $9.09, the first option leg uses a $9.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SOXS chain at a 28-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 SOXS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $9.00 | $1.48 |
| Sell 1 | Call | $10.00 | $1.17 |
SOXS bull call spread risk and reward
- Net Premium / Debit
- -$30.50
- Max Profit (per contract)
- $69.50
- Max Loss (per contract)
- -$30.50
- Breakeven(s)
- $9.31
- Risk / Reward Ratio
- 2.279
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.
SOXS bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on SOXS. 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% | -$30.50 |
| $2.02 | -77.8% | -$30.50 |
| $4.03 | -55.7% | -$30.50 |
| $6.04 | -33.6% | -$30.50 |
| $8.04 | -11.5% | -$30.50 |
| $10.05 | +10.6% | +$69.50 |
| $12.06 | +32.7% | +$69.50 |
| $14.07 | +54.8% | +$69.50 |
| $16.08 | +76.9% | +$69.50 |
| $18.09 | +99.0% | +$69.50 |
When traders use bull call spread on SOXS
Bull call spreads on SOXS reduce the cost of a bullish SOXS etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
SOXS thesis for this bull call spread
The market-implied 1-standard-deviation range for SOXS extends from approximately $5.26 on the downside to $12.92 on the upside. A SOXS bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on SOXS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SOXS IV rank near 54.25% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on SOXS should anchor more to the directional view and the expected-move geometry. As a Financial Services name, SOXS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SOXS-specific events.
SOXS 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. SOXS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SOXS alongside the broader basket even when SOXS-specific fundamentals are unchanged. Long-premium structures like a bull call spread on SOXS 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 SOXS chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on SOXS?
- A bull call spread on SOXS is the bull call spread strategy applied to SOXS (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 SOXS etf trading near $9.09, the strikes shown on this page are snapped to the nearest listed SOXS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are SOXS 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 SOXS bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 147.01%), the computed maximum profit is $69.50 per contract and the computed maximum loss is -$30.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SOXS bull call spread?
- The breakeven for the SOXS bull call spread priced on this page is roughly $9.31 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 SOXS market-implied 1-standard-deviation expected move is approximately 42.15%; 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 SOXS?
- Bull call spreads on SOXS reduce the cost of a bullish SOXS 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 SOXS implied volatility affect this bull call spread?
- SOXS ATM IV is at 147.01% with IV rank near 54.25%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.