IR Bull Call Spread Strategy
IR (Ingersoll Rand Inc.), in the Industrials sector, (Industrial - Machinery industry), listed on NYSE.
Ingersoll Rand Inc., established in 1859 and headquartered in Davidson, North Carolina, delivers essential air, fluid, energy, medical, and specialized vehicle technologies to customers across the United States, Europe, the Middle East, Africa, and the Asia Pacific regions. The company operates through two primary divisions: Industrial Technologies and Services, and Precision and Science Technologies. The Industrial Technologies and Services division is responsible for the design, production, sales, and maintenance of various air and gas compression, vacuum, and blower solutions, alongside fluid handling and loading systems, power tools, and lifting apparatus. This segment also encompasses all related spare parts, consumables, air purification systems, controls, additional accessories, and support services. Meanwhile, the Precision and Science Technologies segment focuses on designing, manufacturing, and marketing a range of highly specialized positive displacement pumps, advanced fluid management systems, and their associated accessories and aftermarket parts. These solutions are critical for precise liquid and gas operations such as dosing, transfer, dispensing, compression, sampling, pressure regulation, and flow control in demanding or niche environments.
IR (Ingersoll Rand Inc.) trades in the Industrials sector, specifically Industrial - Machinery, with a market capitalization of approximately $31.84B, a trailing P/E of 54.34, a beta of 1.20 versus the broader market, a 52-week range of 68.07-100.96, average daily share volume of 4.0M, a public-listing history dating back to 2017, approximately 21K full-time employees. These structural characteristics shape how IR stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.20 places IR roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 54.34 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. IR 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 IR?
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 IR snapshot
As of June 30, 2026, spot at $82.32, ATM IV 35.40%, IV rank 61.04%, expected move 10.15%. The bull call spread on IR 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 80-day expiry.
Why this bull call spread structure on IR specifically: IR IV at 35.40% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 10.15% (roughly $8.35 on the underlying). The 80-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated IR expiries trade a higher absolute premium for lower per-day decay. Position sizing on IR should anchor to the underlying notional of $82.32 per share and to the trader's directional view on IR stock.
IR bull call spread setup
The IR 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 IR near $82.32, the first option leg uses a $80.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IR chain at a 80-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 IR shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $80.00 | $7.65 |
| Sell 1 | Call | $85.00 | $4.65 |
IR bull call spread risk and reward
- Net Premium / Debit
- -$300.00
- Max Profit (per contract)
- $200.00
- Max Loss (per contract)
- -$300.00
- Breakeven(s)
- $83.00
- Risk / Reward Ratio
- 0.667
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.
IR bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on IR. 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% | -$300.00 |
| $18.21 | -77.9% | -$300.00 |
| $36.41 | -55.8% | -$300.00 |
| $54.61 | -33.7% | -$300.00 |
| $72.81 | -11.6% | -$300.00 |
| $91.01 | +10.6% | +$200.00 |
| $109.21 | +32.7% | +$200.00 |
| $127.41 | +54.8% | +$200.00 |
| $145.61 | +76.9% | +$200.00 |
| $163.81 | +99.0% | +$200.00 |
When traders use bull call spread on IR
Bull call spreads on IR reduce the cost of a bullish IR stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
IR thesis for this bull call spread
The market-implied 1-standard-deviation range for IR extends from approximately $73.97 on the downside to $90.67 on the upside. A IR bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on IR, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current IR IV rank near 61.04% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on IR should anchor more to the directional view and the expected-move geometry. As a Industrials name, IR options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IR-specific events.
IR 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. IR positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IR alongside the broader basket even when IR-specific fundamentals are unchanged. Long-premium structures like a bull call spread on IR 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 IR chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on IR?
- A bull call spread on IR is the bull call spread strategy applied to IR (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 IR stock trading near $82.32, the strikes shown on this page are snapped to the nearest listed IR chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IR 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 IR bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 35.40%), the computed maximum profit is $200.00 per contract and the computed maximum loss is -$300.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IR bull call spread?
- The breakeven for the IR bull call spread priced on this page is roughly $83.00 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 IR market-implied 1-standard-deviation expected move is approximately 10.15%; 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 IR?
- Bull call spreads on IR reduce the cost of a bullish IR 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 IR implied volatility affect this bull call spread?
- IR ATM IV is at 35.40% with IV rank near 61.04%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.