ERAS Bull Call Spread Strategy
ERAS (Erasca, Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.
Erasca, Inc., a clinical-stage biopharmaceutical company, focuses on discovering, developing, and commercializing therapies for patients with RAS/MAPK pathway-driven cancers. The company's lead candidates include ERAS-007, an oral inhibitor of ERK1/2 for the treatment of non-small cell lung cancer, colorectal cancer, and acute myeloid leukemia; and ERAS-601, an oral SHP2 inhibitor for patients with advanced or metastatic solid tumors. It is also developing ERAS-801, a central nervous system-penetrant EGFR inhibitor for the treatment of patients with recurrent glioblastoma multiforme. The company was incorporated in 2018 and is headquartered in San Diego, California.
ERAS (Erasca, Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.25B, a beta of 0.68 versus the broader market, a 52-week range of 1.06-24.28, average daily share volume of 6.7M, a public-listing history dating back to 2021, approximately 103 full-time employees. These structural characteristics shape how ERAS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.68 indicates ERAS 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 ERAS?
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 ERAS snapshot
As of May 15, 2026, spot at $10.23, ATM IV 88.20%, IV rank 9.64%, expected move 25.29%. The bull call spread on ERAS 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 ERAS specifically: ERAS IV at 88.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a ERAS bull call spread, with a market-implied 1-standard-deviation move of approximately 25.29% (roughly $2.59 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 ERAS expiries trade a higher absolute premium for lower per-day decay. Position sizing on ERAS should anchor to the underlying notional of $10.23 per share and to the trader's directional view on ERAS stock.
ERAS bull call spread setup
The ERAS 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 ERAS near $10.23, the first option leg uses a $10.23 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed ERAS 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 ERAS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.23 | N/A |
| Sell 1 | Call | $10.74 | N/A |
ERAS 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.
ERAS bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on ERAS. 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 ERAS
Bull call spreads on ERAS reduce the cost of a bullish ERAS stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
ERAS thesis for this bull call spread
The market-implied 1-standard-deviation range for ERAS extends from approximately $7.64 on the downside to $12.82 on the upside. A ERAS bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on ERAS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current ERAS IV rank near 9.64% 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 ERAS at 88.20%. As a Healthcare name, ERAS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to ERAS-specific events.
ERAS 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. ERAS positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move ERAS alongside the broader basket even when ERAS-specific fundamentals are unchanged. Long-premium structures like a bull call spread on ERAS 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 ERAS chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on ERAS?
- A bull call spread on ERAS is the bull call spread strategy applied to ERAS (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 ERAS stock trading near $10.23, the strikes shown on this page are snapped to the nearest listed ERAS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are ERAS 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 ERAS bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 88.20%), 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 ERAS bull call spread?
- The breakeven for the ERAS 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 ERAS market-implied 1-standard-deviation expected move is approximately 25.29%; 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 ERAS?
- Bull call spreads on ERAS reduce the cost of a bullish ERAS 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 ERAS implied volatility affect this bull call spread?
- ERAS ATM IV is at 88.20% with IV rank near 9.64%, 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.