CHRD Bull Call Spread Strategy
CHRD (Chord Energy Corporation), in the Energy sector, (Oil & Gas Exploration & Production industry), listed on NASDAQ.
Chord Energy Corporation operates as an independent exploration and production company. It acquires, exploits, develops, and explores for crude oil, natural gas, and natural gas liquids in the Williston Basin. The company was founded in 2007 and is headquartered in Houston, Texas.
CHRD (Chord Energy Corporation) trades in the Energy sector, specifically Oil & Gas Exploration & Production, with a market capitalization of approximately $8.00B, a beta of 0.40 versus the broader market, a 52-week range of 84.25-150.5, average daily share volume of 1.1M, a public-listing history dating back to 2020, approximately 762 full-time employees. These structural characteristics shape how CHRD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.40 indicates CHRD has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. CHRD 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 CHRD?
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 CHRD snapshot
As of May 15, 2026, spot at $147.87, ATM IV 43.30%, IV rank 35.68%, expected move 12.41%. The bull call spread on CHRD 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 CHRD specifically: CHRD IV at 43.30% 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 12.41% (roughly $18.36 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 CHRD expiries trade a higher absolute premium for lower per-day decay. Position sizing on CHRD should anchor to the underlying notional of $147.87 per share and to the trader's directional view on CHRD stock.
CHRD bull call spread setup
The CHRD 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 CHRD near $147.87, the first option leg uses a $150.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CHRD 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 CHRD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $150.00 | $6.60 |
| Sell 1 | Call | $155.00 | $4.60 |
CHRD bull call spread risk and reward
- Net Premium / Debit
- -$200.00
- Max Profit (per contract)
- $300.00
- Max Loss (per contract)
- -$200.00
- Breakeven(s)
- $152.00
- Risk / Reward Ratio
- 1.500
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.
CHRD bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on CHRD. 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% | -$200.00 |
| $32.70 | -77.9% | -$200.00 |
| $65.40 | -55.8% | -$200.00 |
| $98.09 | -33.7% | -$200.00 |
| $130.79 | -11.6% | -$200.00 |
| $163.48 | +10.6% | +$300.00 |
| $196.17 | +32.7% | +$300.00 |
| $228.87 | +54.8% | +$300.00 |
| $261.56 | +76.9% | +$300.00 |
| $294.25 | +99.0% | +$300.00 |
When traders use bull call spread on CHRD
Bull call spreads on CHRD reduce the cost of a bullish CHRD stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
CHRD thesis for this bull call spread
The market-implied 1-standard-deviation range for CHRD extends from approximately $129.51 on the downside to $166.23 on the upside. A CHRD bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on CHRD, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CHRD IV rank near 35.68% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on CHRD should anchor more to the directional view and the expected-move geometry. As a Energy name, CHRD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CHRD-specific events.
CHRD 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. CHRD positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CHRD alongside the broader basket even when CHRD-specific fundamentals are unchanged. Long-premium structures like a bull call spread on CHRD 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 CHRD chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on CHRD?
- A bull call spread on CHRD is the bull call spread strategy applied to CHRD (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 CHRD stock trading near $147.87, the strikes shown on this page are snapped to the nearest listed CHRD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CHRD 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 CHRD bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 43.30%), the computed maximum profit is $300.00 per contract and the computed maximum loss is -$200.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CHRD bull call spread?
- The breakeven for the CHRD bull call spread priced on this page is roughly $152.00 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 CHRD market-implied 1-standard-deviation expected move is approximately 12.41%; 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 CHRD?
- Bull call spreads on CHRD reduce the cost of a bullish CHRD 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 CHRD implied volatility affect this bull call spread?
- CHRD ATM IV is at 43.30% with IV rank near 35.68%, 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.