CXW Bull Call Spread Strategy
CXW (CoreCivic, Inc.), in the Real Estate sector, (REIT - Specialty industry), listed on NYSE.
CoreCivic, Inc. owns and operates partnership correctional, detention, and residential reentry facilities in the United States. It operates through three segments: CoreCivic Safety, CoreCivic Community, and CoreCivic Properties. The company provides a range of solutions to government partners that serve the public good through corrections and detention management, a network of residential reentry centers to help address America's recidivism crisis, and government real estate solutions. Its correctional, detention, and residential reentry facilities offer rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training, and substance abuse treatment. As of December 31, 2021, the company owned and operated 46 correctional and detention facilities, 26 residential reentry centers, and 10 properties for lease. The company was founded in 1983 and is based in Brentwood, Tennessee.
CXW (CoreCivic, Inc.) trades in the Real Estate sector, specifically REIT - Specialty, with a market capitalization of approximately $2.04B, a trailing P/E of 16.44, a beta of 0.68 versus the broader market, a 52-week range of 15.74-23.2, average daily share volume of 1.2M, a public-listing history dating back to 1997, approximately 12K full-time employees. These structural characteristics shape how CXW stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates CXW has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bull call spread on CXW?
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 CXW snapshot
As of May 15, 2026, spot at $21.06, ATM IV 39.90%, IV rank 18.35%, expected move 11.44%. The bull call spread on CXW 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 CXW specifically: CXW IV at 39.90% is on the cheap side of its 1-year range, which favors premium-buying structures like a CXW bull call spread, with a market-implied 1-standard-deviation move of approximately 11.44% (roughly $2.41 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 CXW expiries trade a higher absolute premium for lower per-day decay. Position sizing on CXW should anchor to the underlying notional of $21.06 per share and to the trader's directional view on CXW stock.
CXW bull call spread setup
The CXW 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 CXW near $21.06, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed CXW 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 CXW shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $21.00 | $1.03 |
| Sell 1 | Call | $22.00 | $0.68 |
CXW bull call spread risk and reward
- Net Premium / Debit
- -$35.00
- Max Profit (per contract)
- $65.00
- Max Loss (per contract)
- -$35.00
- Breakeven(s)
- $21.35
- Risk / Reward Ratio
- 1.857
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.
CXW bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on CXW. 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% | -$35.00 |
| $4.67 | -77.8% | -$35.00 |
| $9.32 | -55.7% | -$35.00 |
| $13.98 | -33.6% | -$35.00 |
| $18.63 | -11.5% | -$35.00 |
| $23.29 | +10.6% | +$65.00 |
| $27.94 | +32.7% | +$65.00 |
| $32.60 | +54.8% | +$65.00 |
| $37.25 | +76.9% | +$65.00 |
| $41.91 | +99.0% | +$65.00 |
When traders use bull call spread on CXW
Bull call spreads on CXW reduce the cost of a bullish CXW stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
CXW thesis for this bull call spread
The market-implied 1-standard-deviation range for CXW extends from approximately $18.65 on the downside to $23.47 on the upside. A CXW bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on CXW, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current CXW IV rank near 18.35% 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 CXW at 39.90%. As a Real Estate name, CXW options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to CXW-specific events.
CXW 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. CXW positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move CXW alongside the broader basket even when CXW-specific fundamentals are unchanged. Long-premium structures like a bull call spread on CXW 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 CXW chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on CXW?
- A bull call spread on CXW is the bull call spread strategy applied to CXW (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 CXW stock trading near $21.06, the strikes shown on this page are snapped to the nearest listed CXW chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are CXW 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 CXW bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 39.90%), the computed maximum profit is $65.00 per contract and the computed maximum loss is -$35.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a CXW bull call spread?
- The breakeven for the CXW bull call spread priced on this page is roughly $21.35 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 CXW market-implied 1-standard-deviation expected move is approximately 11.44%; 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 CXW?
- Bull call spreads on CXW reduce the cost of a bullish CXW 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 CXW implied volatility affect this bull call spread?
- CXW ATM IV is at 39.90% with IV rank near 18.35%, 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.