FHN Bull Call Spread Strategy
FHN (First Horizon Corporation), in the Financial Services sector, (Banks - Regional industry), listed on NYSE.
First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through three segments: Regional Banking, Specialty Banking, and Corporate. It offers general banking services for consumers, businesses, financial institutions, and governments. The company also underwrites bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; sells loans and derivatives; and offers advisory services. In addition, it offers various services, such as mortgage banking; title insurance and loan-closing; brokerage; correspondent banking; nationwide check clearing and remittance processing; trust, fiduciary, and agency; equipment finance; and investment and financial advisory services. Further, the company sells mutual fund and retail insurance products; and credit cards.
FHN (First Horizon Corporation) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $11.12B, a trailing P/E of 10.95, a beta of 0.63 versus the broader market, a 52-week range of 19.04-26.56, average daily share volume of 5.2M, a public-listing history dating back to 1980, approximately 7K full-time employees. These structural characteristics shape how FHN stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.63 indicates FHN has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. The trailing P/E of 10.95 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. FHN 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 FHN?
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 FHN snapshot
As of May 15, 2026, spot at $23.59, ATM IV 28.00%, IV rank 17.19%, expected move 8.03%. The bull call spread on FHN 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 98-day expiry.
Why this bull call spread structure on FHN specifically: FHN IV at 28.00% is on the cheap side of its 1-year range, which favors premium-buying structures like a FHN bull call spread, with a market-implied 1-standard-deviation move of approximately 8.03% (roughly $1.89 on the underlying). The 98-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated FHN expiries trade a higher absolute premium for lower per-day decay. Position sizing on FHN should anchor to the underlying notional of $23.59 per share and to the trader's directional view on FHN stock.
FHN bull call spread setup
The FHN 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 FHN near $23.59, the first option leg uses a $24.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed FHN chain at a 98-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 FHN shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $24.00 | $1.30 |
| Sell 1 | Call | $25.00 | $0.88 |
FHN bull call spread risk and reward
- Net Premium / Debit
- -$42.50
- Max Profit (per contract)
- $57.50
- Max Loss (per contract)
- -$42.50
- Breakeven(s)
- $24.43
- Risk / Reward Ratio
- 1.353
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.
FHN bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on FHN. 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% | -$42.50 |
| $5.22 | -77.9% | -$42.50 |
| $10.44 | -55.7% | -$42.50 |
| $15.65 | -33.6% | -$42.50 |
| $20.87 | -11.5% | -$42.50 |
| $26.08 | +10.6% | +$57.50 |
| $31.30 | +32.7% | +$57.50 |
| $36.51 | +54.8% | +$57.50 |
| $41.73 | +76.9% | +$57.50 |
| $46.94 | +99.0% | +$57.50 |
When traders use bull call spread on FHN
Bull call spreads on FHN reduce the cost of a bullish FHN stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
FHN thesis for this bull call spread
The market-implied 1-standard-deviation range for FHN extends from approximately $21.70 on the downside to $25.48 on the upside. A FHN bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on FHN, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current FHN IV rank near 17.19% 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 FHN at 28.00%. As a Financial Services name, FHN options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to FHN-specific events.
FHN 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. FHN positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move FHN alongside the broader basket even when FHN-specific fundamentals are unchanged. Long-premium structures like a bull call spread on FHN 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 FHN chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on FHN?
- A bull call spread on FHN is the bull call spread strategy applied to FHN (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 FHN stock trading near $23.59, the strikes shown on this page are snapped to the nearest listed FHN chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are FHN 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 FHN bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 28.00%), the computed maximum profit is $57.50 per contract and the computed maximum loss is -$42.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a FHN bull call spread?
- The breakeven for the FHN bull call spread priced on this page is roughly $24.43 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 FHN market-implied 1-standard-deviation expected move is approximately 8.03%; 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 FHN?
- Bull call spreads on FHN reduce the cost of a bullish FHN 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 FHN implied volatility affect this bull call spread?
- FHN ATM IV is at 28.00% with IV rank near 17.19%, 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.