DMAC Bull Call Spread Strategy
DMAC (DiaMedica Therapeutics Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
DiaMedica Therapeutics Inc. operates as a clinical-stage biopharmaceutical entity dedicated to advancing therapeutic solutions for neurological and renal disorders. Its primary drug candidate, DM199, a recombinant human tissue kallikrein-1 protein, is currently undergoing a Phase 2 REDUX trial to assess its efficacy in treating moderate to severe chronic kidney disease linked to Type 1 or Type 2 diabetes. Furthermore, DM199 is being evaluated in Phase 2/3 REMEDY2 trials for acute ischemic stroke patients. In addition to DM199, the company is also developing DM300, which is in its pre-clinical stage for the treatment of various inflammatory conditions. Founded in 2000 and headquartered in Minneapolis, Minnesota, the company was previously known as DiaMedica Inc. before adopting its current name, DiaMedica Therapeutics Inc., in December 2016.
DMAC (DiaMedica Therapeutics Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $368.6M, a beta of 0.97 versus the broader market, a 52-week range of 5.14-10.4195, average daily share volume of 196K, a public-listing history dating back to 2012, approximately 35 full-time employees. These structural characteristics shape how DMAC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.97 places DMAC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bull call spread on DMAC?
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.
DMAC snapshot
As of August 14, 2026, spot at $6.73, ATM IV 114.10%, IV rank 23.57%, expected move 32.71%. The bull call spread on DMAC below is built from the end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bull call spread structure on DMAC specifically: DMAC IV at 114.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a DMAC bull call spread, with a market-implied 1-standard-deviation move of approximately 32.71% (roughly $2.20 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated DMAC expiries trade a higher absolute premium for lower per-day decay. Position sizing on DMAC should anchor to the underlying notional of $6.73 per share and to the trader's directional view on DMAC stock.
DMAC bull call spread setup
The DMAC 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 DMAC at $6.73 on that close, the first option leg uses a $6.73 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed DMAC chain at a 35-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 DMAC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $6.73 | N/A |
| Sell 1 | Call | $7.07 | N/A |
DMAC 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.
DMAC bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on DMAC. 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 DMAC
Bull call spreads on DMAC reduce the cost of a bullish DMAC stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
DMAC thesis for this bull call spread
The market-implied 1-standard-deviation range for DMAC extends from approximately $4.53 on the downside to $8.93 on the upside. A DMAC bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on DMAC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current DMAC IV rank near 23.57% 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 DMAC at 114.10%. As a Healthcare name, DMAC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to DMAC-specific events.
DMAC 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. DMAC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move DMAC alongside the broader basket even when DMAC-specific fundamentals are unchanged. Long-premium structures like a bull call spread on DMAC 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 DMAC chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on DMAC?
- A bull call spread on DMAC is the bull call spread strategy applied to DMAC (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 DMAC stock at $6.73 on the most recent close, the strikes shown on this page are snapped to the nearest listed DMAC chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are DMAC 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 DMAC bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 114.10%), 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 DMAC bull call spread?
- The breakeven for the DMAC bull call spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The DMAC market-implied 1-standard-deviation expected move in the same options snapshot is approximately 32.71%; 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 DMAC?
- Bull call spreads on DMAC reduce the cost of a bullish DMAC 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 DMAC implied volatility affect this bull call spread?
- DMAC ATM IV is at 114.10% with IV rank near 23.57%, 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.