HSIC Bull Call Spread Strategy
HSIC (Henry Schein, Inc.), in the Healthcare sector, (Medical - Distribution industry), listed on NASDAQ.
Henry Schein, Inc. provides health care products and services to dental practitioners and laboratories, physician practices, government, institutional health care clinics, and other alternate care clinics worldwide. It operates through two segments, Health Care Distribution, and Technology and Value-Added Services. The Health Care Distribution segment offers dental products, including infection-control products, handpieces, preventatives, impression materials, composites, anesthetics, teeth, dental implants, gypsum, acrylics, articulators, abrasives, dental chairs, delivery units and lights, X-ray supplies and equipment, personal protective equipment, and high-tech and digital restoration equipment, as well as equipment repair services. This segment also provides medical products comprising branded and generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products, X-ray products, equipment, and vitamins. The Technology and Value-Added Services segment offers software, technology, and other value-added services that include practice management software systems for dental and medical practitioners. This segment also provides value-added practice solutions, which comprise financial services on a non-recourse basis, e-services, practice technology, network, and hardware services, as well as continuing education services for practitioners, and consulting and other services.
HSIC (Henry Schein, Inc.) trades in the Healthcare sector, specifically Medical - Distribution, with a market capitalization of approximately $7.91B, a trailing P/E of 20.21, a beta of 0.82 versus the broader market, a 52-week range of 61.95-89.29, average daily share volume of 1.4M, a public-listing history dating back to 1995, approximately 25K full-time employees. These structural characteristics shape how HSIC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.82 places HSIC roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline.
What is a bull call spread on HSIC?
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 HSIC snapshot
As of May 15, 2026, spot at $73.06, ATM IV 31.60%, IV rank 6.91%, expected move 9.06%. The bull call spread on HSIC 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 HSIC specifically: HSIC IV at 31.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a HSIC bull call spread, with a market-implied 1-standard-deviation move of approximately 9.06% (roughly $6.62 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 HSIC expiries trade a higher absolute premium for lower per-day decay. Position sizing on HSIC should anchor to the underlying notional of $73.06 per share and to the trader's directional view on HSIC stock.
HSIC bull call spread setup
The HSIC 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 HSIC near $73.06, the first option leg uses a $73.06 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed HSIC 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 HSIC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $73.06 | N/A |
| Sell 1 | Call | $76.71 | N/A |
HSIC 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.
HSIC bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on HSIC. 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 HSIC
Bull call spreads on HSIC reduce the cost of a bullish HSIC stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
HSIC thesis for this bull call spread
The market-implied 1-standard-deviation range for HSIC extends from approximately $66.44 on the downside to $79.68 on the upside. A HSIC bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on HSIC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current HSIC IV rank near 6.91% 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 HSIC at 31.60%. As a Healthcare name, HSIC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to HSIC-specific events.
HSIC 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. HSIC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move HSIC alongside the broader basket even when HSIC-specific fundamentals are unchanged. Long-premium structures like a bull call spread on HSIC 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 HSIC chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on HSIC?
- A bull call spread on HSIC is the bull call spread strategy applied to HSIC (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 HSIC stock trading near $73.06, the strikes shown on this page are snapped to the nearest listed HSIC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are HSIC 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 HSIC bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 31.60%), 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 HSIC bull call spread?
- The breakeven for the HSIC 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 HSIC market-implied 1-standard-deviation expected move is approximately 9.06%; 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 HSIC?
- Bull call spreads on HSIC reduce the cost of a bullish HSIC 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 HSIC implied volatility affect this bull call spread?
- HSIC ATM IV is at 31.60% with IV rank near 6.91%, 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.