COHU Bull Call Spread Strategy
COHU (Cohu, Inc.), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Cohu, Inc., through its subsidiaries, provides semiconductor test equipment and services in China, the United States, Taiwan, Malaysia, the Philippines, and internationally. The company supplies semiconductor test and inspection handlers, micro-electromechanical system (MEMS) test modules, test contactors, thermal sub-systems, and semiconductor automated test equipment for semiconductor and electronics manufacturers, and test subcontractors. It also provides semiconductor automated test equipment for wafer level and device package testing; various test handlers, including pick-and-place, turret, gravity, strip, and MEMS and thermal sub-systems; interface products comprising test contactors, and probe heads and pins; spares and kits; various parts and labor warranties on test and handling systems, and instruments; and training on the maintenance and operation of its systems, as well as application, data management software, and consulting services on its products. In addition, the company offers data analytics product that includes DI-Core, a software suite used to optimize Cohu equipment performance, which provides real-time online performance monitoring and process control. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972.
COHU (Cohu, Inc.) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $2.32B, a beta of 1.61 versus the broader market, a 52-week range of 16.46-52.43, average daily share volume of 1.0M, a public-listing history dating back to 1980, approximately 3K full-time employees. These structural characteristics shape how COHU stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.61 indicates COHU 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 COHU?
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 COHU snapshot
As of May 15, 2026, spot at $47.20, ATM IV 70.70%, IV rank 24.45%, expected move 20.27%. The bull call spread on COHU 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 COHU specifically: COHU IV at 70.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a COHU bull call spread, with a market-implied 1-standard-deviation move of approximately 20.27% (roughly $9.57 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 COHU expiries trade a higher absolute premium for lower per-day decay. Position sizing on COHU should anchor to the underlying notional of $47.20 per share and to the trader's directional view on COHU stock.
COHU bull call spread setup
The COHU 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 COHU near $47.20, the first option leg uses a $47.20 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed COHU 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 COHU shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $47.20 | N/A |
| Sell 1 | Call | $49.56 | N/A |
COHU bull call spread risk and reward
- Net Premium / Debit
- N/A
- Max Profit (per contract)
- Unbounded
- Max Loss (per contract)
- Unbounded
- Breakeven(s)
- None on modeled curve
- Risk / Reward Ratio
- N/A
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.
COHU bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on COHU. 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.
When traders use bull call spread on COHU
Bull call spreads on COHU reduce the cost of a bullish COHU stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
COHU thesis for this bull call spread
The market-implied 1-standard-deviation range for COHU extends from approximately $37.63 on the downside to $56.77 on the upside. A COHU bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on COHU, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current COHU IV rank near 24.45% 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 COHU at 70.70%. As a Technology name, COHU options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to COHU-specific events.
COHU 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. COHU positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move COHU alongside the broader basket even when COHU-specific fundamentals are unchanged. Long-premium structures like a bull call spread on COHU 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 COHU chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on COHU?
- A bull call spread on COHU is the bull call spread strategy applied to COHU (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 COHU stock trading near $47.20, the strikes shown on this page are snapped to the nearest listed COHU chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are COHU 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 COHU bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 70.70%), the computed maximum profit is unbounded per contract and the computed maximum loss is unbounded per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a COHU bull call spread?
- The breakeven for the COHU bull call spread priced on this page is no defined breakeven on the modeled curve 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 COHU market-implied 1-standard-deviation expected move is approximately 20.27%; 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 COHU?
- Bull call spreads on COHU reduce the cost of a bullish COHU 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 COHU implied volatility affect this bull call spread?
- COHU ATM IV is at 70.70% with IV rank near 24.45%, 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.