HBNC Bull Call Spread Strategy

HBNC (Horizon Bancorp, Inc.), in the Financial Services sector, (Banks - Regional industry), listed on NASDAQ.

Horizon Bancorp, Inc. operates as the bank holding company for Horizon Bank that provides a range of commercial and retail banking services. The company offers various deposits. It also provides commercial, residential real estate, mortgage warehouse, and consumer loans. In addition, the company offers corporate and individual trust and agency, investment management, and real estate investment trust services; and sells various insurance products. It operates through a network of 78 full-service offices in northern and central Indiana and southern and central Michigan. Horizon Bancorp, Inc. was founded in 1873 and is headquartered in Michigan City, Indiana.

HBNC (Horizon Bancorp, Inc.) trades in the Financial Services sector, specifically Banks - Regional, with a market capitalization of approximately $911.1M, a beta of 0.83 versus the broader market, a 52-week range of 14.34-19.07, average daily share volume of 357K, a public-listing history dating back to 2002, approximately 841 full-time employees. These structural characteristics shape how HBNC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.83 places HBNC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. HBNC 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 HBNC?

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 HBNC snapshot

As of May 15, 2026, spot at $17.62, ATM IV 47.70%, IV rank 6.83%, expected move 13.68%. The bull call spread on HBNC 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 HBNC specifically: HBNC IV at 47.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a HBNC bull call spread, with a market-implied 1-standard-deviation move of approximately 13.68% (roughly $2.41 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 HBNC expiries trade a higher absolute premium for lower per-day decay. Position sizing on HBNC should anchor to the underlying notional of $17.62 per share and to the trader's directional view on HBNC stock.

HBNC bull call spread setup

The HBNC 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 HBNC near $17.62, the first option leg uses a $17.62 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HBNC 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 HBNC shares for the stock leg in covered calls and collars).

ActionTypeStrike / BasisPremium (est)
Buy 1Call$17.62N/A
Sell 1Call$18.50N/A

HBNC 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.

HBNC bull call spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bull call spread on HBNC. 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 HBNC

Bull call spreads on HBNC reduce the cost of a bullish HBNC stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.

HBNC thesis for this bull call spread

The market-implied 1-standard-deviation range for HBNC extends from approximately $15.21 on the downside to $20.03 on the upside. A HBNC bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on HBNC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HBNC IV rank near 6.83% 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 HBNC at 47.70%. As a Financial Services name, HBNC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HBNC-specific events.

HBNC 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. HBNC positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HBNC alongside the broader basket even when HBNC-specific fundamentals are unchanged. Long-premium structures like a bull call spread on HBNC 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 HBNC chain quotes before placing a trade.

Frequently asked questions

What is a bull call spread on HBNC?
A bull call spread on HBNC is the bull call spread strategy applied to HBNC (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 HBNC stock trading near $17.62, the strikes shown on this page are snapped to the nearest listed HBNC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are HBNC 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 HBNC bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 47.70%), 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 HBNC bull call spread?
The breakeven for the HBNC 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 HBNC market-implied 1-standard-deviation expected move is approximately 13.68%; 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 HBNC?
Bull call spreads on HBNC reduce the cost of a bullish HBNC 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 HBNC implied volatility affect this bull call spread?
HBNC ATM IV is at 47.70% with IV rank near 6.83%, 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.

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