SPRX Bull Call Spread Strategy
SPRX (Spear Alpha ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Spear Alpha ETF (SPRX) operates as an actively managed exchange-traded fund, primarily allocating its capital to equity securities. This includes both common shares and American Depositary Receipts (ADRs). The investment strategy, guided by Spear Advisors LLC (the Adviser), seeks out companies deemed poised to capitalize on transformative breakthroughs in industrial technology. Specifically, the Adviser defines 'industrial technology innovation' as technological advancements currently reshaping, or possessing the potential to fundamentally reshape, the industrial sector. It is important to note that this fund maintains a non-diversified portfolio.
SPRX (Spear Alpha ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $111.6M, a beta of 2.22 versus the broader market, a 52-week range of 31.55-59.1, average daily share volume of 140K, a public-listing history dating back to 2021. These structural characteristics shape how SPRX etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.22 indicates SPRX has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. SPRX 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 SPRX?
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.
SPRX snapshot
As of August 14, 2026, spot at $49.71, ATM IV 47.80%, IV rank 4.91%, expected move 13.70%. The bull call spread on SPRX below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bull call spread structure on SPRX specifically: SPRX IV at 47.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a SPRX bull call spread, with a market-implied 1-standard-deviation move of approximately 13.70% (roughly $6.81 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated SPRX expiries trade a higher absolute premium for lower per-day decay. Position sizing on SPRX should anchor to the underlying notional of $49.71 per share and to the trader's directional view on SPRX etf.
SPRX bull call spread setup
The SPRX bull call spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With SPRX at $49.71 on that close, the first option leg uses a $50.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed SPRX chain at a 35-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 SPRX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $50.00 | $2.80 |
| Sell 1 | Call | $52.00 | $2.05 |
SPRX bull call spread risk and reward
- Net Premium / Debit
- -$75.00
- Max Profit (per contract)
- $125.00
- Max Loss (per contract)
- -$75.00
- Breakeven(s)
- $50.75
- Risk / Reward Ratio
- 1.667
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.
SPRX bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on SPRX. 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% | -$75.00 |
| $11.00 | -77.9% | -$75.00 |
| $21.99 | -55.8% | -$75.00 |
| $32.98 | -33.7% | -$75.00 |
| $43.97 | -11.5% | -$75.00 |
| $54.96 | +10.6% | +$125.00 |
| $65.95 | +32.7% | +$125.00 |
| $76.94 | +54.8% | +$125.00 |
| $87.93 | +76.9% | +$125.00 |
| $98.92 | +99.0% | +$125.00 |
When traders use bull call spread on SPRX
Bull call spreads on SPRX reduce the cost of a bullish SPRX etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
SPRX thesis for this bull call spread
The market-implied 1-standard-deviation range for SPRX extends from approximately $42.90 on the downside to $56.52 on the upside. A SPRX bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on SPRX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current SPRX IV rank near 4.91% 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 SPRX at 47.80%. As a Financial Services name, SPRX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to SPRX-specific events.
SPRX 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. SPRX positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move SPRX alongside the broader basket even when SPRX-specific fundamentals are unchanged. Long-premium structures like a bull call spread on SPRX 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 SPRX chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on SPRX?
- A bull call spread on SPRX is the bull call spread strategy applied to SPRX (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 SPRX etf at $49.71 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed SPRX chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are SPRX 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 SPRX bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 47.80%), the computed maximum profit is $125.00 per contract and the computed maximum loss is -$75.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a SPRX bull call spread?
- The breakeven for the SPRX bull call spread priced on this page is roughly $50.75 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The SPRX market-implied 1-standard-deviation expected move in the same options snapshot is approximately 13.70%; 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 SPRX?
- Bull call spreads on SPRX reduce the cost of a bullish SPRX 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 SPRX implied volatility affect this bull call spread?
- SPRX ATM IV is at 47.80% with IV rank near 4.91%, 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.