FELE Bull Call Spread Strategy
FELE (Franklin Electric Co., Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NASDAQ.
Franklin Electric Co., Inc., together with its subsidiaries, designs, manufactures, and distributes water and fuel pumping systems in the United States, Canada, Latin America, Europe, the Middle East, Africa, and the Asia Pacific. It operates through Water Systems, Energy Systems, and Distribution segments. The Water Systems segment offers motors, pumps, water treatment systems, monitoring devices, and related parts and equipment for use in groundwater, water transfer, and wastewater in a range of residential, agricultural, municipal, and industrial applications; and electronic drives and controls for the motors, which control functionality and provide protection from various hazards, such as electrical surges, over-heating, and dry wells or dry tanks. Its Energy Systems segment produces and markets pumps, motors, pipes, sumps, fittings, vapor recovery components, electronic controls, monitoring devices, and related parts and equipment for use in energy system applications; and components between the tanks and the dispensers, including submersible pumps, station hardware, piping, and corrosion control systems. This segment serves other energy markets, such as power reliability systems, including intelligent electronic devices that are designed for online monitoring for the power utility, hydroelectric, rail, and telecommunication and data center infrastructure. The Distribution segment sells to and provides presale support and specifications to the installing contractors.
FELE (Franklin Electric Co., Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $4.77B, a trailing P/E of 31.69, a beta of 1.05 versus the broader market, a 52-week range of 88.63-111.53, average daily share volume of 307K, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how FELE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.05 places FELE roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. FELE 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 FELE?
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 FELE snapshot
As of June 30, 2026, spot at $107.82, ATM IV 26.80%, IV rank 5.88%, expected move 7.68%. The bull call spread on FELE 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 FELE specifically: FELE IV at 26.80% is on the cheap side of its 1-year range, which favors premium-buying structures like a FELE bull call spread, with a market-implied 1-standard-deviation move of approximately 7.68% (roughly $8.28 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 FELE expiries trade a higher absolute premium for lower per-day decay. Position sizing on FELE should anchor to the underlying notional of $107.82 per share and to the trader's directional view on FELE stock.
FELE bull call spread setup
The FELE 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 FELE near $107.82, the first option leg uses a $107.82 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FELE 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 FELE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $107.82 | N/A |
| Sell 1 | Call | $113.21 | N/A |
FELE 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.
FELE bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on FELE. 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 FELE
Bull call spreads on FELE reduce the cost of a bullish FELE stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
FELE thesis for this bull call spread
The market-implied 1-standard-deviation range for FELE extends from approximately $99.54 on the downside to $116.10 on the upside. A FELE bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on FELE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FELE IV rank near 5.88% 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 FELE at 26.80%. As a Industrials name, FELE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FELE-specific events.
FELE 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. FELE positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FELE alongside the broader basket even when FELE-specific fundamentals are unchanged. Long-premium structures like a bull call spread on FELE 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 FELE chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on FELE?
- A bull call spread on FELE is the bull call spread strategy applied to FELE (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 FELE stock trading near $107.82, the strikes shown on this page are snapped to the nearest listed FELE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FELE 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 FELE bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 26.80%), 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 FELE bull call spread?
- The breakeven for the FELE 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 FELE market-implied 1-standard-deviation expected move is approximately 7.68%; 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 FELE?
- Bull call spreads on FELE reduce the cost of a bullish FELE 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 FELE implied volatility affect this bull call spread?
- FELE ATM IV is at 26.80% with IV rank near 5.88%, 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.