GIL Bull Call Spread Strategy
GIL (Gildan Activewear Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NYSE.
Gildan Activewear Inc. manufactures and sells various apparel products in the United States, North America, Europe, Asia-Pacific, and Latin America. It provides various activewear products, including T-shirts, fleece tops and bottoms, and sports shirts under the Gildan, Gildan Performance, Gildan Hammer, Comfort Colors, American Apparel, Alstyle, and GoldToe brands. The company also offers hosiery products comprising athletic; dress; and casual, liner, therapeutic, and workwear socks, as well as sheer pantyhose, tights, and leggings under the Gildan, Under Armour, GoldToe, PowerSox, Signature Gold by Goldtoe, Peds, MediPeds, Therapy Plus, All Pro, Secret, Silks, Secret Silky, and American Apparel brands. In addition, it provides men's and boys' underwear products, and ladies panties under the Gildan and Gildan Platinum brands; and ladies' shapewear, intimates, and accessories under the Secret and Secret Silky brands. The company sells its products to wholesale distributors, screen printers, and embellishers, as well as to retailers and lifestyle brand companies. The company was formerly known as Textiles Gildan Inc. and changed its name to Gildan Activewear Inc. in March 1995.
GIL (Gildan Activewear Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $8.67B, a trailing P/E of 42.11, a beta of 1.11 versus the broader market, a 52-week range of 46-73.7, average daily share volume of 1.4M, a public-listing history dating back to 1998, approximately 50K full-time employees. These structural characteristics shape how GIL stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.11 places GIL roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 42.11 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. GIL 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 GIL?
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 GIL snapshot
As of May 15, 2026, spot at $56.55, ATM IV 31.50%, IV rank 3.71%, expected move 9.03%. The bull call spread on GIL 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 GIL specifically: GIL IV at 31.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a GIL bull call spread, with a market-implied 1-standard-deviation move of approximately 9.03% (roughly $5.11 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 GIL expiries trade a higher absolute premium for lower per-day decay. Position sizing on GIL should anchor to the underlying notional of $56.55 per share and to the trader's directional view on GIL stock.
GIL bull call spread setup
The GIL 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 GIL near $56.55, the first option leg uses a $57.50 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed GIL 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 GIL shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $57.50 | $1.83 |
| Sell 1 | Call | $60.00 | $0.95 |
GIL bull call spread risk and reward
- Net Premium / Debit
- -$87.50
- Max Profit (per contract)
- $162.50
- Max Loss (per contract)
- -$87.50
- Breakeven(s)
- $58.38
- Risk / Reward Ratio
- 1.857
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.
GIL bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on GIL. 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% | -$87.50 |
| $12.51 | -77.9% | -$87.50 |
| $25.01 | -55.8% | -$87.50 |
| $37.52 | -33.7% | -$87.50 |
| $50.02 | -11.5% | -$87.50 |
| $62.52 | +10.6% | +$162.50 |
| $75.02 | +32.7% | +$162.50 |
| $87.53 | +54.8% | +$162.50 |
| $100.03 | +76.9% | +$162.50 |
| $112.53 | +99.0% | +$162.50 |
When traders use bull call spread on GIL
Bull call spreads on GIL reduce the cost of a bullish GIL stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
GIL thesis for this bull call spread
The market-implied 1-standard-deviation range for GIL extends from approximately $51.44 on the downside to $61.66 on the upside. A GIL bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on GIL, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current GIL IV rank near 3.71% 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 GIL at 31.50%. As a Consumer Cyclical name, GIL options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to GIL-specific events.
GIL 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. GIL positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move GIL alongside the broader basket even when GIL-specific fundamentals are unchanged. Long-premium structures like a bull call spread on GIL 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 GIL chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on GIL?
- A bull call spread on GIL is the bull call spread strategy applied to GIL (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 GIL stock trading near $56.55, the strikes shown on this page are snapped to the nearest listed GIL chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are GIL 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 GIL bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 31.50%), the computed maximum profit is $162.50 per contract and the computed maximum loss is -$87.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a GIL bull call spread?
- The breakeven for the GIL bull call spread priced on this page is roughly $58.38 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 GIL market-implied 1-standard-deviation expected move is approximately 9.03%; 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 GIL?
- Bull call spreads on GIL reduce the cost of a bullish GIL 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 GIL implied volatility affect this bull call spread?
- GIL ATM IV is at 31.50% with IV rank near 3.71%, 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.