TYD Bull Call Spread Strategy
TYD (Direxion Daily 7-10 Year Treasury Bull 3X ETF), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
Direxion's Daily 7-10 Year Treasury Bull & Bear 3X ETFs are designed to provide daily returns, before any fees or expenses, that are three times (300%) the performance of the ICE U.S. Treasury 7-10 Year Bond Index. Alternatively, for the "bear" version, they aim for three times the inverse (opposite) of that index's daily performance. However, there is no assurance that these funds will successfully achieve their intended investment goals.
TYD (Direxion Daily 7-10 Year Treasury Bull 3X ETF) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $34.8M, a beta of 3.50 versus the broader market, a 52-week range of 22.78-26.86, average daily share volume of 23K, a public-listing history dating back to 2009. These structural characteristics shape how TYD etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.50 indicates TYD has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. TYD 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 TYD?
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 TYD snapshot
As of June 30, 2026, spot at $23.84, ATM IV 140.10%, IV rank 36.99%, expected move 40.17%. The bull call spread on TYD 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 17-day expiry.
Why this bull call spread structure on TYD specifically: TYD IV at 140.10% 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 40.17% (roughly $9.58 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated TYD expiries trade a higher absolute premium for lower per-day decay. Position sizing on TYD should anchor to the underlying notional of $23.84 per share and to the trader's directional view on TYD etf.
TYD bull call spread setup
The TYD 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 TYD near $23.84, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed TYD chain at a 17-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 TYD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.00 | $0.23 |
| Sell 1 | Call | $25.00 | $0.02 |
TYD bull call spread risk and reward
- Net Premium / Debit
- -$20.50
- Max Profit (per contract)
- $79.50
- Max Loss (per contract)
- -$20.50
- Breakeven(s)
- $24.21
- Risk / Reward Ratio
- 3.878
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.
TYD bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on TYD. 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% | -$20.50 |
| $5.28 | -77.9% | -$20.50 |
| $10.55 | -55.7% | -$20.50 |
| $15.82 | -33.6% | -$20.50 |
| $21.09 | -11.5% | -$20.50 |
| $26.36 | +10.6% | +$79.50 |
| $31.63 | +32.7% | +$79.50 |
| $36.90 | +54.8% | +$79.50 |
| $42.17 | +76.9% | +$79.50 |
| $47.44 | +99.0% | +$79.50 |
When traders use bull call spread on TYD
Bull call spreads on TYD reduce the cost of a bullish TYD etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
TYD thesis for this bull call spread
The market-implied 1-standard-deviation range for TYD extends from approximately $14.26 on the downside to $33.42 on the upside. A TYD bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on TYD, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current TYD IV rank near 36.99% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on TYD should anchor more to the directional view and the expected-move geometry. As a Financial Services name, TYD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to TYD-specific events.
TYD 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. TYD positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move TYD alongside the broader basket even when TYD-specific fundamentals are unchanged. Long-premium structures like a bull call spread on TYD 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 TYD chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on TYD?
- A bull call spread on TYD is the bull call spread strategy applied to TYD (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 TYD etf trading near $23.84, the strikes shown on this page are snapped to the nearest listed TYD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are TYD 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 TYD bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 140.10%), the computed maximum profit is $79.50 per contract and the computed maximum loss is -$20.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a TYD bull call spread?
- The breakeven for the TYD bull call spread priced on this page is roughly $24.21 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 TYD market-implied 1-standard-deviation expected move is approximately 40.17%; 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 TYD?
- Bull call spreads on TYD reduce the cost of a bullish TYD 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 TYD implied volatility affect this bull call spread?
- TYD ATM IV is at 140.10% with IV rank near 36.99%, 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.