CVLT Bull Call Spread Strategy
CVLT (Commvault Systems, Inc.), in the Technology sector, (Software - Application industry), listed on NASDAQ.
Commvault Systems, Inc. provides a cyber resilience platform for protecting and recovering data and cloud-native applications in the Americas and internationally. The company offers Operational Recovery, which provides backup, verifiable recovery, and cost-optimized cloud workload mobility to ensure data availability and granular recovery; autonomous recovery for automated disaster and cyber recovery use cases to deliver backup, replication, and disaster recovery for all workloads on-premises, in the cloud, across various clouds, and in hybrid environments; and Cyber Recovery for threat scanning to hunt for threats within backup data, cyber deception, and threat detection to provide early warning of attacks. It also provides Commvault Cloud’s Cleanroom Recovery for organizations to be ready to recover by providing a clean, isolated, and on-demand recovery location in the cloud, as well as the ability to test their incident response plans and recover; and Commvault HyperScale X, an intuitive, easy-to-deploy and scale-out, and integrated data protection solution to support enterprises' transformations, such as legacy scale-up infrastructures, hybrid cloud, container, and virtualized environments. In addition, the company offers Commvault Cloud Air Gap Protect, an integrated air-gapped cloud storage target that enables IT organizations to adopt cloud storage to ease digital transformation, reduce risks, and scale; and Commvault's Compliance, which provides built-in reporting, auditing, and logging to help ensure data is not modified or deleted for legal and compliance purposes. Further, it provides Commvault Cloud Rewind to restore an organization’s cloud application and data environment; and Commvault’s Clumio Backtrack to revert objects and datasets stored in Amazon Simple Storage Service (Amazon S3), as well as professional and customer support services. The company was incorporated in 1996 and is headquartered in Tinton Falls, New Jersey.
CVLT (Commvault Systems, Inc.) trades in the Technology sector, specifically Software - Application, with a market capitalization of approximately $5.80B, a trailing P/E of 85.32, a beta of 0.82 versus the broader market, a 52-week range of 71.75-200.68, average daily share volume of 939K, a public-listing history dating back to 2006, approximately 3K full-time employees. These structural characteristics shape how CVLT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places CVLT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 85.32 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple.
What is a bull call spread on CVLT?
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 CVLT snapshot
As of June 30, 2026, spot at $140.56, ATM IV 42.30%, IV rank 19.60%, expected move 12.13%. The bull call spread on CVLT 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 CVLT specifically: CVLT IV at 42.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a CVLT bull call spread, with a market-implied 1-standard-deviation move of approximately 12.13% (roughly $17.05 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 CVLT expiries trade a higher absolute premium for lower per-day decay. Position sizing on CVLT should anchor to the underlying notional of $140.56 per share and to the trader's directional view on CVLT stock.
CVLT bull call spread setup
The CVLT 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 CVLT near $140.56, the first option leg uses a $140.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CVLT 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 CVLT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $140.00 | $6.10 |
| Sell 1 | Call | $150.00 | $2.78 |
CVLT bull call spread risk and reward
- Net Premium / Debit
- -$332.50
- Max Profit (per contract)
- $667.50
- Max Loss (per contract)
- -$332.50
- Breakeven(s)
- $143.33
- Risk / Reward Ratio
- 2.008
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.
CVLT bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on CVLT. 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% | -$332.50 |
| $31.09 | -77.9% | -$332.50 |
| $62.16 | -55.8% | -$332.50 |
| $93.24 | -33.7% | -$332.50 |
| $124.32 | -11.6% | -$332.50 |
| $155.40 | +10.6% | +$667.50 |
| $186.47 | +32.7% | +$667.50 |
| $217.55 | +54.8% | +$667.50 |
| $248.63 | +76.9% | +$667.50 |
| $279.71 | +99.0% | +$667.50 |
When traders use bull call spread on CVLT
Bull call spreads on CVLT reduce the cost of a bullish CVLT stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
CVLT thesis for this bull call spread
The market-implied 1-standard-deviation range for CVLT extends from approximately $123.51 on the downside to $157.61 on the upside. A CVLT bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on CVLT, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CVLT IV rank near 19.60% 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 CVLT at 42.30%. As a Technology name, CVLT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CVLT-specific events.
CVLT 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. CVLT positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CVLT alongside the broader basket even when CVLT-specific fundamentals are unchanged. Long-premium structures like a bull call spread on CVLT 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 CVLT chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on CVLT?
- A bull call spread on CVLT is the bull call spread strategy applied to CVLT (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 CVLT stock trading near $140.56, the strikes shown on this page are snapped to the nearest listed CVLT chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CVLT 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 CVLT bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 42.30%), the computed maximum profit is $667.50 per contract and the computed maximum loss is -$332.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CVLT bull call spread?
- The breakeven for the CVLT bull call spread priced on this page is roughly $143.33 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 CVLT market-implied 1-standard-deviation expected move is approximately 12.13%; 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 CVLT?
- Bull call spreads on CVLT reduce the cost of a bullish CVLT 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 CVLT implied volatility affect this bull call spread?
- CVLT ATM IV is at 42.30% with IV rank near 19.60%, 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.