BURL Bull Call Spread Strategy
BURL (Burlington Stores, Inc.), in the Consumer Cyclical sector, (Apparel - Retail industry), listed on NYSE.
Burlington Stores, Inc. operates as a prominent retail chain across the United States, offering a diverse selection of branded apparel and other consumer products. Its merchandise is heavily focused on current fashion trends, providing items such as women's ready-to-wear, men's clothing, youth apparel, footwear, accessories, and outerwear. Additionally, the company stocks toys, gifts, and various products for the home, baby, and beauty categories. As of January 29, 2022, Burlington Stores, Inc. maintained an extensive network of 837 outlets under its flagship Burlington Stores brand, two Cohoes Fashions locations, and a single MJM Designer Shoes store. These establishments are situated throughout 45 U.S. states and Puerto Rico. The enterprise was founded in 1972 and is headquartered in Burlington, New Jersey.
BURL (Burlington Stores, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Retail, with a market capitalization of approximately $20.19B, a trailing P/E of 32.97, a beta of 1.46 versus the broader market, a 52-week range of 228.46-351.85, average daily share volume of 791K, a public-listing history dating back to 2013, approximately 17K full-time employees. These structural characteristics shape how BURL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.46 indicates BURL has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bull call spread on BURL?
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 BURL snapshot
As of June 30, 2026, spot at $316.28, ATM IV 36.83%, IV rank 36.14%, expected move 10.56%. The bull call spread on BURL 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 31-day expiry.
Why this bull call spread structure on BURL specifically: BURL IV at 36.83% 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 10.56% (roughly $33.40 on the underlying). The 31-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BURL expiries trade a higher absolute premium for lower per-day decay. Position sizing on BURL should anchor to the underlying notional of $316.28 per share and to the trader's directional view on BURL stock.
BURL bull call spread setup
The BURL 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 BURL near $316.28, the first option leg uses a $315.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BURL chain at a 31-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 BURL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $315.00 | $14.95 |
| Sell 1 | Call | $330.00 | $8.80 |
BURL bull call spread risk and reward
- Net Premium / Debit
- -$615.00
- Max Profit (per contract)
- $885.00
- Max Loss (per contract)
- -$615.00
- Breakeven(s)
- $321.15
- Risk / Reward Ratio
- 1.439
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.
BURL bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on BURL. 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% | -$615.00 |
| $69.94 | -77.9% | -$615.00 |
| $139.87 | -55.8% | -$615.00 |
| $209.80 | -33.7% | -$615.00 |
| $279.73 | -11.6% | -$615.00 |
| $349.66 | +10.6% | +$885.00 |
| $419.59 | +32.7% | +$885.00 |
| $489.52 | +54.8% | +$885.00 |
| $559.45 | +76.9% | +$885.00 |
| $629.38 | +99.0% | +$885.00 |
When traders use bull call spread on BURL
Bull call spreads on BURL reduce the cost of a bullish BURL stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
BURL thesis for this bull call spread
The market-implied 1-standard-deviation range for BURL extends from approximately $282.88 on the downside to $349.68 on the upside. A BURL bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on BURL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current BURL IV rank near 36.14% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on BURL should anchor more to the directional view and the expected-move geometry. As a Consumer Cyclical name, BURL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BURL-specific events.
BURL 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. BURL positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BURL alongside the broader basket even when BURL-specific fundamentals are unchanged. Long-premium structures like a bull call spread on BURL 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 BURL chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on BURL?
- A bull call spread on BURL is the bull call spread strategy applied to BURL (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 BURL stock trading near $316.28, the strikes shown on this page are snapped to the nearest listed BURL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are BURL 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 BURL bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 36.83%), the computed maximum profit is $885.00 per contract and the computed maximum loss is -$615.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BURL bull call spread?
- The breakeven for the BURL bull call spread priced on this page is roughly $321.15 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 BURL market-implied 1-standard-deviation expected move is approximately 10.56%; 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 BURL?
- Bull call spreads on BURL reduce the cost of a bullish BURL 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 BURL implied volatility affect this bull call spread?
- BURL ATM IV is at 36.83% with IV rank near 36.14%, 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.