How are CHE 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 CHE bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $1,962.50 per contract and the computed maximum loss is -$1,037.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a CHE bull call spread?

The breakeven for the CHE bull call spread priced on this page is roughly $440.38 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 CHE market-implied 1-standard-deviation expected move is approximately 6.85%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current CHE implied volatility affect this bull call spread?

CHE ATM IV is at 23.90% with IV rank near 19.01%, 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.

CHE Bull Call Spread Strategy

CHE (Chemed Corporation), in the Healthcare sector, (Medical - Care Facilities industry), listed on NYSE.

Chemed Corporation provides hospice and palliative care services to patients through a network of physicians, registered nurses, home health aides, social workers, clergy, and volunteers primarily in the United States. The company operates in two segments, VITAS and Roto-Rooter. It offers plumbing, drain cleaning, excavation, water restoration, and other related services to residential and commercial customers through company-owned branches, independent contractors, and franchisees. The company was incorporated in 1970 and is headquartered in Cincinnati, Ohio.

CHE (Chemed Corporation) trades in the Healthcare sector, specifically Medical - Care Facilities, with a market capitalization of approximately $5.63B, a trailing P/E of 22.32, a beta of 0.54 versus the broader market, a 52-week range of 365.21-583.96, average daily share volume of 271K, a public-listing history dating back to 1973, approximately 16K full-time employees. These structural characteristics shape how CHE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.54 indicates CHE has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHE 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 CHE?

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 CHE snapshot

As of May 15, 2026, spot at $434.70, ATM IV 23.90%, IV rank 19.01%, expected move 6.85%. The bull call spread on CHE 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 CHE specifically: CHE IV at 23.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CHE bull call spread, with a market-implied 1-standard-deviation move of approximately 6.85% (roughly $29.79 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 CHE expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHE should anchor to the underlying notional of $434.70 per share and to the trader's directional view on CHE stock.

CHE bull call spread setup

The CHE 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 CHE near $434.70, the first option leg uses a $430.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHE 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 CHE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$430.00	$13.85
Sell 1	Call	$460.00	$3.48

CHE bull call spread risk and reward

Net Premium / Debit: -$1,037.50
Max Profit (per contract): $1,962.50
Max Loss (per contract): -$1,037.50
Breakeven(s): $440.38
Risk / Reward Ratio: 1.892

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.

CHE bull call spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bull call spread on CHE. 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%	-$1,037.50
$96.12	-77.9%	-$1,037.50
$192.24	-55.8%	-$1,037.50
$288.35	-33.7%	-$1,037.50
$384.46	-11.6%	-$1,037.50
$480.58	+10.6%	+$1,962.50
$576.69	+32.7%	+$1,962.50
$672.80	+54.8%	+$1,962.50
$768.92	+76.9%	+$1,962.50
$865.03	+99.0%	+$1,962.50

When traders use bull call spread on CHE

Bull call spreads on CHE reduce the cost of a bullish CHE stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.

CHE thesis for this bull call spread

The market-implied 1-standard-deviation range for CHE extends from approximately $404.91 on the downside to $464.49 on the upside. A CHE bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on CHE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CHE IV rank near 19.01% 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 CHE at 23.90%. As a Healthcare name, CHE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHE-specific events.

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

Frequently asked questions

What is a bull call spread on CHE?: A bull call spread on CHE is the bull call spread strategy applied to CHE (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 CHE stock trading near $434.70, the strikes shown on this page are snapped to the nearest listed CHE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are CHE 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 CHE bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 23.90%), the computed maximum profit is $1,962.50 per contract and the computed maximum loss is -$1,037.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a CHE bull call spread?: The breakeven for the CHE bull call spread priced on this page is roughly $440.38 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 CHE market-implied 1-standard-deviation expected move is approximately 6.85%; 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 CHE?: Bull call spreads on CHE reduce the cost of a bullish CHE 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 CHE implied volatility affect this bull call spread?: CHE ATM IV is at 23.90% with IV rank near 19.01%, 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.