UFO Bull Call Spread Strategy
UFO (Procure Space ETF), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
The Procure Space ETF, identified by the ticker UFO, is designed to mirror the financial performance of the 'S-Network Space Index' before accounting for the fund's operational costs and fees. This particular index is structured to assess the returns generated by companies primarily involved in various space-related industries.
UFO (Procure Space ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.27B, a beta of 1.86 versus the broader market, a 52-week range of 29.24-68.212, average daily share volume of 1.1M, a public-listing history dating back to 2019. These structural characteristics shape how UFO etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.86 indicates UFO has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UFO 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 UFO?
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.
UFO snapshot
As of August 14, 2026, spot at $48.51, ATM IV 33.60%, IV rank 3.70%, expected move 9.63%. The bull call spread on UFO 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 UFO specifically: UFO IV at 33.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a UFO bull call spread, with a market-implied 1-standard-deviation move of approximately 9.63% (roughly $4.67 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 UFO expiries trade a higher absolute premium for lower per-day decay. Position sizing on UFO should anchor to the underlying notional of $48.51 per share and to the trader's directional view on UFO etf.
UFO bull call spread setup
The UFO 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 UFO at $48.51 on that close, the first option leg uses a $49.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UFO 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 UFO shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $49.00 | $1.90 |
| Sell 1 | Call | $51.00 | $0.95 |
UFO bull call spread risk and reward
- Net Premium / Debit
- -$95.00
- Max Profit (per contract)
- $105.00
- Max Loss (per contract)
- -$95.00
- Breakeven(s)
- $49.95
- Risk / Reward Ratio
- 1.105
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.
UFO bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on UFO. 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% | -$95.00 |
| $10.73 | -77.9% | -$95.00 |
| $21.46 | -55.8% | -$95.00 |
| $32.18 | -33.7% | -$95.00 |
| $42.91 | -11.5% | -$95.00 |
| $53.63 | +10.6% | +$105.00 |
| $64.36 | +32.7% | +$105.00 |
| $75.08 | +54.8% | +$105.00 |
| $85.81 | +76.9% | +$105.00 |
| $96.53 | +99.0% | +$105.00 |
When traders use bull call spread on UFO
Bull call spreads on UFO reduce the cost of a bullish UFO etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
UFO thesis for this bull call spread
The market-implied 1-standard-deviation range for UFO extends from approximately $43.84 on the downside to $53.18 on the upside. A UFO bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on UFO, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current UFO IV rank near 3.70% 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 UFO at 33.60%. As a Financial Services name, UFO options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UFO-specific events.
UFO 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. UFO positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UFO alongside the broader basket even when UFO-specific fundamentals are unchanged. Long-premium structures like a bull call spread on UFO 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 UFO chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on UFO?
- A bull call spread on UFO is the bull call spread strategy applied to UFO (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 UFO etf at $48.51 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed UFO chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are UFO 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 UFO bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 33.60%), the computed maximum profit is $105.00 per contract and the computed maximum loss is -$95.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UFO bull call spread?
- The breakeven for the UFO bull call spread priced on this page is roughly $49.95 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 UFO market-implied 1-standard-deviation expected move in the same options snapshot is approximately 9.63%; 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 UFO?
- Bull call spreads on UFO reduce the cost of a bullish UFO 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 UFO implied volatility affect this bull call spread?
- UFO ATM IV is at 33.60% with IV rank near 3.70%, 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.