UST Bull Call Spread Strategy
UST (ProShares - Ultra 7-10 Year Treasury), in the Financial Services sector, (Asset Management - Leveraged industry), listed on AMEX.
The ProShares Ultra 7-10 Year Treasury aims to deliver daily investment returns that effectively double the single-day performance of the ICE U.S. Treasury 7-10 Year Bond Index, all before accounting for any associated fees and operational costs.
UST (ProShares - Ultra 7-10 Year Treasury) trades in the Financial Services sector, specifically Asset Management - Leveraged, with a market capitalization of approximately $15.2M, a beta of 2.34 versus the broader market, a 52-week range of 41.13-45.43, average daily share volume of 8K, a public-listing history dating back to 2010. These structural characteristics shape how UST etf options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.34 indicates UST has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. UST 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 UST?
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 UST snapshot
As of June 30, 2026, spot at $42.34, ATM IV 283.10%, IV rank 100.00%, expected move 81.16%. The bull call spread on UST 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 UST specifically: UST IV at 283.10% is rich versus its 1-year range, which makes a premium-buying UST bull call spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 81.16% (roughly $34.36 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 UST expiries trade a higher absolute premium for lower per-day decay. Position sizing on UST should anchor to the underlying notional of $42.34 per share and to the trader's directional view on UST etf.
UST bull call spread setup
The UST 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 UST near $42.34, the first option leg uses a $42.34 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed UST 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 UST shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $42.34 | N/A |
| Sell 1 | Call | $44.46 | N/A |
UST bull call spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
UST bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on UST. 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.
When traders use bull call spread on UST
Bull call spreads on UST reduce the cost of a bullish UST etf position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
UST thesis for this bull call spread
The market-implied 1-standard-deviation range for UST extends from approximately $7.98 on the downside to $76.70 on the upside. A UST bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on UST, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current UST IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on UST at 283.10%. As a Financial Services name, UST options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to UST-specific events.
UST 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. UST positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move UST alongside the broader basket even when UST-specific fundamentals are unchanged. Long-premium structures like a bull call spread on UST 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 UST chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on UST?
- A bull call spread on UST is the bull call spread strategy applied to UST (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 UST etf trading near $42.34, the strikes shown on this page are snapped to the nearest listed UST chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are UST 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 UST bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 283.10%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a UST bull call spread?
- The breakeven for the UST bull call spread priced on this page is no defined breakeven on the modeled curve 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 UST market-implied 1-standard-deviation expected move is approximately 81.16%; 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 UST?
- Bull call spreads on UST reduce the cost of a bullish UST 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 UST implied volatility affect this bull call spread?
- UST ATM IV is at 283.10% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.