IRTC Bull Call Spread Strategy
IRTC (iRhythm Technologies, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
iRhythm Technologies, Inc., a digital healthcare company, provides ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. It offers Zio service, an ambulatory cardiac monitoring solution that combines a wire-free, patch-based, and wearable biosensor with a cloud-based data analytic platform to help physicians to monitor patients and diagnose arrhythmias. The company's Zio XT and AT monitors, a single-use, wire-free, and wearable patch-based biosensors, records patient's heartbeats and ECG data. It has a development collaboration agreement with Verily Life Sciences LLC to develop various next-generation atrial fibrillation screening, detection, or monitoring products. The company was incorporated in 2006 and is headquartered in San Francisco, California.
IRTC (iRhythm Technologies, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $3.77B, a beta of 1.33 versus the broader market, a 52-week range of 112.31-212, average daily share volume of 587K, a public-listing history dating back to 2016, approximately 2K full-time employees. These structural characteristics shape how IRTC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.33 indicates IRTC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bull call spread on IRTC?
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 IRTC snapshot
As of May 15, 2026, spot at $114.62, ATM IV 48.60%, IV rank 36.37%, expected move 13.93%. The bull call spread on IRTC 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 IRTC specifically: IRTC IV at 48.60% 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 13.93% (roughly $15.97 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 IRTC expiries trade a higher absolute premium for lower per-day decay. Position sizing on IRTC should anchor to the underlying notional of $114.62 per share and to the trader's directional view on IRTC stock.
IRTC bull call spread setup
The IRTC 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 IRTC near $114.62, the first option leg uses a $115.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed IRTC 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 IRTC shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $115.00 | $7.00 |
| Sell 1 | Call | $120.00 | $4.95 |
IRTC bull call spread risk and reward
- Net Premium / Debit
- -$205.00
- Max Profit (per contract)
- $295.00
- Max Loss (per contract)
- -$205.00
- Breakeven(s)
- $117.05
- Risk / Reward Ratio
- 1.439
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.
IRTC bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on IRTC. 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% | -$205.00 |
| $25.35 | -77.9% | -$205.00 |
| $50.69 | -55.8% | -$205.00 |
| $76.04 | -33.7% | -$205.00 |
| $101.38 | -11.6% | -$205.00 |
| $126.72 | +10.6% | +$295.00 |
| $152.06 | +32.7% | +$295.00 |
| $177.40 | +54.8% | +$295.00 |
| $202.75 | +76.9% | +$295.00 |
| $228.09 | +99.0% | +$295.00 |
When traders use bull call spread on IRTC
Bull call spreads on IRTC reduce the cost of a bullish IRTC stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
IRTC thesis for this bull call spread
The market-implied 1-standard-deviation range for IRTC extends from approximately $98.65 on the downside to $130.59 on the upside. A IRTC bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on IRTC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current IRTC IV rank near 36.37% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on IRTC should anchor more to the directional view and the expected-move geometry. As a Healthcare name, IRTC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to IRTC-specific events.
IRTC 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. IRTC positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move IRTC alongside the broader basket even when IRTC-specific fundamentals are unchanged. Long-premium structures like a bull call spread on IRTC 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 IRTC chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on IRTC?
- A bull call spread on IRTC is the bull call spread strategy applied to IRTC (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 IRTC stock trading near $114.62, the strikes shown on this page are snapped to the nearest listed IRTC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are IRTC 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 IRTC bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 48.60%), the computed maximum profit is $295.00 per contract and the computed maximum loss is -$205.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a IRTC bull call spread?
- The breakeven for the IRTC bull call spread priced on this page is roughly $117.05 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 IRTC market-implied 1-standard-deviation expected move is approximately 13.93%; 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 IRTC?
- Bull call spreads on IRTC reduce the cost of a bullish IRTC 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 IRTC implied volatility affect this bull call spread?
- IRTC ATM IV is at 48.60% with IV rank near 36.37%, 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.