How are BMI long call max profit and max loss calculated?

Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the BMI long call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$655.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a BMI long call?

The breakeven for the BMI long call priced on this page is roughly $136.55 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 BMI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current BMI implied volatility affect this long call?

BMI ATM IV is at 37.90% with IV rank near 28.68%, 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.

BMI Long Call Strategy

BMI (Badger Meter, Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.

Badger Meter, Inc. (BMI) provides a comprehensive range of solutions for flow measurement, quality assessment, control, and communication. Operating globally, the company serves markets across North America, Europe, Asia, and the Middle East. For municipal water utilities, BMI supplies both conventional and advanced water meters, complemented by associated radio, software, and service technologies. Additionally, Badger Meter engineers and produces a variety of flow instrumentation devices, including meters, valves, and sensing tools. These instruments are vital for measuring and controlling the flow of various substances—from water, air, and steam to oil and other liquids and gases—within industrial piping and pipelines. They are incorporated by original equipment manufacturers (OEMs) as primary measurement components within their products or systems and distributed through manufacturer representatives.

BMI (Badger Meter, Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $3.91B, a trailing P/E of 31.13, a beta of 0.64 versus the broader market, a 52-week range of 112.09-204, average daily share volume of 581K, a public-listing history dating back to 1983, approximately 2K full-time employees. These structural characteristics shape how BMI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.64 indicates BMI has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. BMI pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.

What is a long call on BMI?

A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration.

BMI snapshot

As of August 14, 2026, spot at $130.39, ATM IV 37.90%, IV rank 28.68%, expected move 10.87%. The long call on BMI 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 long call structure on BMI specifically: BMI IV at 37.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a BMI long call, with a market-implied 1-standard-deviation move of approximately 10.87% (roughly $14.17 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 BMI expiries trade a higher absolute premium for lower per-day decay. Position sizing on BMI should anchor to the underlying notional of $130.39 per share and to the trader's directional view on BMI stock.

BMI long call setup

The BMI long call 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 BMI at $130.39 on that close, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BMI 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 BMI shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$130.00	$6.55

BMI long call risk and reward

Net Premium / Debit: -$655.00
Max Profit (per contract): Unbounded
Max Loss (per contract): -$655.00
Breakeven(s): $136.55
Risk / Reward Ratio: Unbounded

Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium.

BMI long call payoff curve

Modeled P&L at expiration across a range of underlying prices for the long call on BMI. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$655.00
$28.84	-77.9%	-$655.00
$57.67	-55.8%	-$655.00
$86.50	-33.7%	-$655.00
$115.33	-11.6%	-$655.00
$144.15	+10.6%	+$760.42
$172.98	+32.7%	+$3,643.31
$201.81	+54.8%	+$6,526.19
$230.64	+76.9%	+$9,409.08
$259.47	+99.0%	+$12,291.96

When traders use long call on BMI

Long calls on BMI express a bullish thesis with defined risk; traders use them ahead of BMI catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.

BMI thesis for this long call

The market-implied 1-standard-deviation range for BMI extends from approximately $116.22 on the downside to $144.56 on the upside. A BMI long call expresses a directional view that the underlying closes above the strike plus premium at expiration, ideally with implied volatility holding or expanding to preserve extrinsic value through the hold period. Current BMI IV rank near 28.68% 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 BMI at 37.90%. As a Industrials name, BMI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BMI-specific events.

BMI long call positions are structurally 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. BMI positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BMI alongside the broader basket even when BMI-specific fundamentals are unchanged. Long-premium structures like a long call on BMI 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 BMI chain quotes before placing a trade.

Frequently asked questions

What is a long call on BMI?: A long call on BMI is the long call strategy applied to BMI (stock). The strategy is structurally bullish: A long call buys upside exposure with a fixed maximum loss equal to the premium paid; profit accrues if the underlying closes above the strike plus premium at expiration. With BMI stock at $130.39 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BMI chain strike and the premiums come straight from that session's bid/ask midpoint.
How are BMI long call max profit and max loss calculated?: Max profit is unbounded; max loss equals the premium paid times 100. Breakeven is strike plus premium. For the BMI long call priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 37.90%), the computed maximum profit is unbounded per contract and the computed maximum loss is -$655.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a BMI long call?: The breakeven for the BMI long call priced on this page is roughly $136.55 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 BMI market-implied 1-standard-deviation expected move in the same options snapshot is approximately 10.87%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
When should you consider a long call on BMI?: Long calls on BMI express a bullish thesis with defined risk; traders use them ahead of BMI catalysts (earnings, product launches, macro events) when the expected upside justifies the premium and theta decay.
How does current BMI implied volatility affect this long call?: BMI ATM IV is at 37.90% with IV rank near 28.68%, 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.