KNF Bull Call Spread Strategy
KNF (Knife River Corporation), in the Basic Materials sector, (Construction Materials industry), listed on NYSE.
Knife River Corporation is a U.S.-based entity focused on supplying aggregate-derived building materials and offering related contracting services. Its business activities are structured across six distinct operational segments: Pacific, Northwest, Mountain, North Central, South, and Energy Services. The company is involved in extracting, processing, and distributing crucial construction aggregates, including varieties of crushed stone, sand, and gravel. Additionally, it produces and sells both asphalt and ready-mix concrete. To support these core product lines, Knife River also performs various contracting tasks, such as heavy-civil construction, paving with asphalt and concrete, and comprehensive site development and grading work. Its primary clients are governmental bodies at the federal, state, and municipal levels, for whom it undertakes a wide range of public infrastructure initiatives.
KNF (Knife River Corporation) trades in the Basic Materials sector, specifically Construction Materials, with a market capitalization of approximately $3.83B, a trailing P/E of 27.33, a beta of 0.55 versus the broader market, a 52-week range of 58.72-96.28, average daily share volume of 586K, a public-listing history dating back to 2023, approximately 5K full-time employees. These structural characteristics shape how KNF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.55 indicates KNF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bull call spread on KNF?
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.
KNF snapshot
As of August 14, 2026, spot at $66.02, ATM IV 44.70%, IV rank 3.31%, expected move 12.82%. The bull call spread on KNF below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 7-day expiry.
Why this bull call spread structure on KNF specifically: KNF IV at 44.70% is on the cheap side of its 1-year range, which favors premium-buying structures like a KNF bull call spread, with a market-implied 1-standard-deviation move of approximately 12.82% (roughly $8.46 on the underlying). The 7-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KNF expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNF should anchor to the underlying notional of $66.02 per share and to the trader's directional view on KNF stock.
KNF bull call spread setup
The KNF bull call spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With KNF at $66.02 on that close, the first option leg uses a $65.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNF chain at a 7-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 KNF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $65.00 | $2.48 |
| Sell 1 | Call | $70.00 | $0.63 |
KNF bull call spread risk and reward
- Net Premium / Debit
- -$184.50
- Max Profit (per contract)
- $315.50
- Max Loss (per contract)
- -$184.50
- Breakeven(s)
- $66.85
- Risk / Reward Ratio
- 1.710
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.
KNF bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on KNF. 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% | -$184.50 |
| $14.61 | -77.9% | -$184.50 |
| $29.20 | -55.8% | -$184.50 |
| $43.80 | -33.7% | -$184.50 |
| $58.40 | -11.5% | -$184.50 |
| $72.99 | +10.6% | +$315.50 |
| $87.59 | +32.7% | +$315.50 |
| $102.18 | +54.8% | +$315.50 |
| $116.78 | +76.9% | +$315.50 |
| $131.38 | +99.0% | +$315.50 |
When traders use bull call spread on KNF
Bull call spreads on KNF reduce the cost of a bullish KNF stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
KNF thesis for this bull call spread
The market-implied 1-standard-deviation range for KNF extends from approximately $57.56 on the downside to $74.48 on the upside. A KNF bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on KNF, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KNF IV rank near 3.31% 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 KNF at 44.70%. As a Basic Materials name, KNF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNF-specific events.
KNF 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. KNF positions also carry Basic Materials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KNF alongside the broader basket even when KNF-specific fundamentals are unchanged. Long-premium structures like a bull call spread on KNF 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 KNF chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on KNF?
- A bull call spread on KNF is the bull call spread strategy applied to KNF (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 KNF stock at $66.02 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed KNF chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are KNF 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 KNF bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 44.70%), the computed maximum profit is $315.50 per contract and the computed maximum loss is -$184.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KNF bull call spread?
- The breakeven for the KNF bull call spread priced on this page is roughly $66.85 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The KNF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 12.82%; 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 KNF?
- Bull call spreads on KNF reduce the cost of a bullish KNF 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 KNF implied volatility affect this bull call spread?
- KNF ATM IV is at 44.70% with IV rank near 3.31%, 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.