FDS Bull Call Spread Strategy
FDS (FactSet Research Systems Inc.), in the Financial Services sector, (Financial - Data & Stock Exchanges industry), listed on NYSE.
FactSet Research Systems Inc. is a financial intelligence firm providing a comprehensive suite of integrated data and analytical software. The company serves the global investment community, with its operations spanning the Americas, Europe, the Middle East, Africa, and the Asia Pacific region. FactSet delivers critical insights and information through specialized workflow solutions covering research, analytics, and trading, complemented by its content, technology platforms, and wealth management resources. Its diverse clientele includes portfolio managers, investment banks, asset managers, wealth advisors, corporate entities, and various other financial sector organizations. FactSet was established in 1978 and is headquartered in Norwalk, Connecticut.
FDS (FactSet Research Systems Inc.) trades in the Financial Services sector, specifically Financial - Data & Stock Exchanges, with a market capitalization of approximately $8.44B, a trailing P/E of 14.56, a beta of 0.71 versus the broader market, a 52-week range of 185-453.41, average daily share volume of 972K, a public-listing history dating back to 1996, approximately 13K full-time employees. These structural characteristics shape how FDS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.71 places FDS roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FDS pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bull call spread on FDS?
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 FDS snapshot
As of June 29, 2026, spot at $233.72, ATM IV 66.80%, IV rank 89.75%, expected move 19.15%. The bull call spread on FDS 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 18-day expiry.
Why this bull call spread structure on FDS specifically: FDS IV at 66.80% is rich versus its 1-year range, which makes a premium-buying FDS bull call spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 19.15% (roughly $44.76 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FDS expiries trade a higher absolute premium for lower per-day decay. Position sizing on FDS should anchor to the underlying notional of $233.72 per share and to the trader's directional view on FDS stock.
FDS bull call spread setup
The FDS 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 FDS near $233.72, the first option leg uses a $230.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FDS chain at a 18-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 FDS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $230.00 | $15.25 |
| Sell 1 | Call | $250.00 | $7.55 |
FDS bull call spread risk and reward
- Net Premium / Debit
- -$770.00
- Max Profit (per contract)
- $1,230.00
- Max Loss (per contract)
- -$770.00
- Breakeven(s)
- $237.70
- Risk / Reward Ratio
- 1.597
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.
FDS bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on FDS. 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% | -$770.00 |
| $51.69 | -77.9% | -$770.00 |
| $103.36 | -55.8% | -$770.00 |
| $155.04 | -33.7% | -$770.00 |
| $206.71 | -11.6% | -$770.00 |
| $258.39 | +10.6% | +$1,230.00 |
| $310.06 | +32.7% | +$1,230.00 |
| $361.74 | +54.8% | +$1,230.00 |
| $413.42 | +76.9% | +$1,230.00 |
| $465.09 | +99.0% | +$1,230.00 |
When traders use bull call spread on FDS
Bull call spreads on FDS reduce the cost of a bullish FDS stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
FDS thesis for this bull call spread
The market-implied 1-standard-deviation range for FDS extends from approximately $188.96 on the downside to $278.48 on the upside. A FDS bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on FDS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FDS IV rank near 89.75% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on FDS at 66.80%. As a Financial Services name, FDS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FDS-specific events.
FDS 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. FDS positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FDS alongside the broader basket even when FDS-specific fundamentals are unchanged. Long-premium structures like a bull call spread on FDS 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 FDS chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on FDS?
- A bull call spread on FDS is the bull call spread strategy applied to FDS (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 FDS stock trading near $233.72, the strikes shown on this page are snapped to the nearest listed FDS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FDS 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 FDS bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 66.80%), the computed maximum profit is $1,230.00 per contract and the computed maximum loss is -$770.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FDS bull call spread?
- The breakeven for the FDS bull call spread priced on this page is roughly $237.70 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 FDS market-implied 1-standard-deviation expected move is approximately 19.15%; 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 FDS?
- Bull call spreads on FDS reduce the cost of a bullish FDS 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 FDS implied volatility affect this bull call spread?
- FDS ATM IV is at 66.80% with IV rank near 89.75%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.