TXS Bull Call Spread Strategy
TXS (Texas Capital Texas Equity Index ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
TXS tracks an index composed of companies that have significant contributions to the economy of Texas. The fund adviser believes that companies headquartered in Texas enjoy certain economic, regulatory, taxation, workforce and other benefits relative to companies headquartered in other states. Initially, all eligible securities from the investable equity universe that meet certain size and liquidity requirements are selected as index constituents. Component sectors in the index are weighted based on their industry contributions to Texass GDP, as reported for the private sector by the US Bureau of Economic Analysis. Companies within each sector are then weighted based on their market-cap, with a minimum cap of 0.05% and maximum cap of 10% per constituent. The fund does not limit its investment to a certain market-cap bracket.
TXS (Texas Capital Texas Equity Index ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $34.1M, a beta of 0.91 versus the broader market, a 52-week range of 32.89-39.78, average daily share volume of 3K, a public-listing history dating back to 2023. These structural characteristics shape how TXS etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.91 places TXS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. TXS 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 TXS?
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 TXS snapshot
As of May 15, 2026, spot at $39.41, ATM IV 54.80%, expected move 15.71%. The bull call spread on TXS 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 TXS specifically: IV rank is unavailable in the current snapshot, so regime-based timing for TXS is inferred from ATM IV at 54.80% alone, with a market-implied 1-standard-deviation move of approximately 15.71% (roughly $6.19 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 TXS expiries trade a higher absolute premium for lower per-day decay. Position sizing on TXS should anchor to the underlying notional of $39.41 per share and to the trader's directional view on TXS etf.
TXS bull call spread setup
The TXS 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 TXS near $39.41, the first option leg uses a $39.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TXS 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 TXS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $39.00 | $2.91 |
| Sell 1 | Call | $41.00 | $2.02 |
TXS bull call spread risk and reward
- Net Premium / Debit
- -$89.00
- Max Profit (per contract)
- $111.00
- Max Loss (per contract)
- -$89.00
- Breakeven(s)
- $39.89
- Risk / Reward Ratio
- 1.247
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.
TXS bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on TXS. 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% | -$89.00 |
| $8.72 | -77.9% | -$89.00 |
| $17.44 | -55.8% | -$89.00 |
| $26.15 | -33.7% | -$89.00 |
| $34.86 | -11.5% | -$89.00 |
| $43.57 | +10.6% | +$111.00 |
| $52.29 | +32.7% | +$111.00 |
| $61.00 | +54.8% | +$111.00 |
| $69.71 | +76.9% | +$111.00 |
| $78.42 | +99.0% | +$111.00 |
When traders use bull call spread on TXS
Bull call spreads on TXS reduce the cost of a bullish TXS etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
TXS thesis for this bull call spread
The market-implied 1-standard-deviation range for TXS extends from approximately $33.22 on the downside to $45.60 on the upside. A TXS bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on TXS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Financial Services name, TXS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TXS-specific events.
TXS 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. TXS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TXS alongside the broader basket even when TXS-specific fundamentals are unchanged. Long-premium structures like a bull call spread on TXS 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 TXS chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on TXS?
- A bull call spread on TXS is the bull call spread strategy applied to TXS (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 TXS etf trading near $39.41, the strikes shown on this page are snapped to the nearest listed TXS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TXS 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 TXS bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 54.80%), the computed maximum profit is $111.00 per contract and the computed maximum loss is -$89.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TXS bull call spread?
- The breakeven for the TXS bull call spread priced on this page is roughly $39.89 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 TXS market-implied 1-standard-deviation expected move is approximately 15.71%; 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 TXS?
- Bull call spreads on TXS reduce the cost of a bullish TXS 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 TXS implied volatility affect this bull call spread?
- Current TXS ATM IV is 54.80%; IV rank context is unavailable in the current snapshot.