CTMX Bull Call Spread Strategy
CTMX (CytomX Therapeutics, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
CytomX Therapeutics, Inc. is a United States-based biopharmaceutical company primarily focused on creating treatments for cancer. The company utilizes its proprietary Probody technology platform to engineer targeted antibody therapeutics for oncological applications. Its robust clinical pipeline includes several notable drug candidates. CX-2009, an antibody-drug conjugate (ADC) designed to target CD166, is currently in Phase II clinical trials for treating breast cancer. Another investigational therapy, CX-2029, has also reached Phase II trials, where it is being evaluated for various cancers such as squamous non-small cell lung cancer, head and neck squamous cell carcinoma, esophageal and gastro-esophageal junction cancers, and diffuse large B-cell lymphoma. Additionally, CytomX is progressing two CTLA-4 Probody therapeutics: BMS-986249, which is undergoing Phase I/II clinical trials for metastatic melanoma, and BMS-986288, in Phase I trials for solid tumors.
CTMX (CytomX Therapeutics, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $546.8M, a beta of 2.09 versus the broader market, a 52-week range of 1.72-8.21, average daily share volume of 4.4M, a public-listing history dating back to 2015, approximately 119 full-time employees. These structural characteristics shape how CTMX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.09 indicates CTMX 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 CTMX?
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 CTMX snapshot
As of June 30, 2026, spot at $3.74, ATM IV 71.90%, IV rank 14.39%, expected move 20.61%. The bull call spread on CTMX 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 17-day expiry.
Why this bull call spread structure on CTMX specifically: CTMX IV at 71.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CTMX bull call spread, with a market-implied 1-standard-deviation move of approximately 20.61% (roughly $0.77 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated CTMX expiries trade a higher absolute premium for lower per-day decay. Position sizing on CTMX should anchor to the underlying notional of $3.74 per share and to the trader's directional view on CTMX stock.
CTMX bull call spread setup
The CTMX 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 CTMX near $3.74, the first option leg uses a $3.74 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CTMX chain at a 17-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 CTMX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.74 | N/A |
| Sell 1 | Call | $3.93 | N/A |
CTMX 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.
CTMX bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on CTMX. 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 CTMX
Bull call spreads on CTMX reduce the cost of a bullish CTMX stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
CTMX thesis for this bull call spread
The market-implied 1-standard-deviation range for CTMX extends from approximately $2.97 on the downside to $4.51 on the upside. A CTMX bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on CTMX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CTMX IV rank near 14.39% 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 CTMX at 71.90%. As a Healthcare name, CTMX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CTMX-specific events.
CTMX 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. CTMX positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CTMX alongside the broader basket even when CTMX-specific fundamentals are unchanged. Long-premium structures like a bull call spread on CTMX 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 CTMX chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on CTMX?
- A bull call spread on CTMX is the bull call spread strategy applied to CTMX (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 CTMX stock trading near $3.74, the strikes shown on this page are snapped to the nearest listed CTMX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CTMX 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 CTMX bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 71.90%), 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 CTMX bull call spread?
- The breakeven for the CTMX 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 CTMX market-implied 1-standard-deviation expected move is approximately 20.61%; 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 CTMX?
- Bull call spreads on CTMX reduce the cost of a bullish CTMX 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 CTMX implied volatility affect this bull call spread?
- CTMX ATM IV is at 71.90% with IV rank near 14.39%, 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.