ADMA Bull Call Spread Strategy
ADMA (ADMA Biologics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
ADMA Biologics, Inc., a biopharmaceutical company, engages in developing, manufacturing, and marketing specialty plasma-derived biologics for the treatment of immune deficiencies and infectious diseases in the United States and internationally. It offers BIVIGAM, an intravenous immune globulin (IVIG) product indicated for the treatment of primary humoral immunodeficiency (PI); ASCENIV, an IVIG product for the treatment of PI; and Nabi-HB for the treatment of acute exposure to blood containing Hepatitis B surface antigen and other listed exposures to Hepatitis B. The company also develops a pipeline of plasma-derived therapeutics, including products related to the methods of treatment and prevention of S. pneumonia infection for an immunoglobulin. In addition, it operates source plasma collection facilities. The company sells its products through independent distributors, sales agents, specialty pharmacies, and other alternate site providers. ADMA Biologics, Inc. was incorporated in 2004 and is headquartered in Ramsey, New Jersey.
ADMA (ADMA Biologics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $1.97B, a trailing P/E of 12.14, a beta of 0.82 versus the broader market, a 52-week range of 7.21-22.37, average daily share volume of 7.3M, a public-listing history dating back to 2013, approximately 685 full-time employees. These structural characteristics shape how ADMA stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places ADMA roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bull call spread on ADMA?
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 ADMA snapshot
As of May 15, 2026, spot at $8.27, ATM IV 60.20%, IV rank 13.13%, expected move 17.26%. The bull call spread on ADMA 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 ADMA specifically: ADMA IV at 60.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ADMA bull call spread, with a market-implied 1-standard-deviation move of approximately 17.26% (roughly $1.43 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 ADMA expiries trade a higher absolute premium for lower per-day decay. Position sizing on ADMA should anchor to the underlying notional of $8.27 per share and to the trader's directional view on ADMA stock.
ADMA bull call spread setup
The ADMA 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 ADMA near $8.27, the first option leg uses a $8.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ADMA 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 ADMA shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $8.00 | $0.80 |
| Sell 1 | Call | $9.00 | $0.30 |
ADMA bull call spread risk and reward
- Net Premium / Debit
- -$50.00
- Max Profit (per contract)
- $50.00
- Max Loss (per contract)
- -$50.00
- Breakeven(s)
- $8.50
- Risk / Reward Ratio
- 1.000
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.
ADMA bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on ADMA. 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 | -99.9% | -$50.00 |
| $1.84 | -77.8% | -$50.00 |
| $3.66 | -55.7% | -$50.00 |
| $5.49 | -33.6% | -$50.00 |
| $7.32 | -11.5% | -$50.00 |
| $9.15 | +10.6% | +$50.00 |
| $10.97 | +32.7% | +$50.00 |
| $12.80 | +54.8% | +$50.00 |
| $14.63 | +76.9% | +$50.00 |
| $16.46 | +99.0% | +$50.00 |
When traders use bull call spread on ADMA
Bull call spreads on ADMA reduce the cost of a bullish ADMA stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
ADMA thesis for this bull call spread
The market-implied 1-standard-deviation range for ADMA extends from approximately $6.84 on the downside to $9.70 on the upside. A ADMA bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on ADMA, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ADMA IV rank near 13.13% 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 ADMA at 60.20%. As a Healthcare name, ADMA options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ADMA-specific events.
ADMA 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. ADMA positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ADMA alongside the broader basket even when ADMA-specific fundamentals are unchanged. Long-premium structures like a bull call spread on ADMA 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 ADMA chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on ADMA?
- A bull call spread on ADMA is the bull call spread strategy applied to ADMA (stock). 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 ADMA stock trading near $8.27, the strikes shown on this page are snapped to the nearest listed ADMA chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ADMA 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 ADMA bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 60.20%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a ADMA bull call spread?
- The breakeven for the ADMA bull call spread priced on this page is roughly $8.50 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 ADMA market-implied 1-standard-deviation expected move is approximately 17.26%; 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 ADMA?
- Bull call spreads on ADMA reduce the cost of a bullish ADMA stock 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 ADMA implied volatility affect this bull call spread?
- ADMA ATM IV is at 60.20% with IV rank near 13.13%, 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.