KRMD Bull Call Spread Strategy
KRMD (KORU Medical Systems, Inc.), in the Healthcare sector, (Medical - Instruments & Supplies industry), listed on NASDAQ.
KORU Medical Systems, Inc. designs, manufactures, and markets portable medical devices primarily for the ambulatory infusion market in the United States and internationally. It offers mechanical infusion product comprising the FREEDOM infusion systems that include the FREEDOM60 syringe driver, the FreedomEdge syringe driver, HIgH-Flo subcutaneous safety needle sets, and precision flow rate tubing. The company also provides education and training materials to clinicians, patients, and patient advocates. It sells its products through direct sales and medical device distributors, as well as online. KORU Medical Systems, Inc. was incorporated in 1980 and is headquartered in Chester, New York.
KRMD (KORU Medical Systems, Inc.) trades in the Healthcare sector, specifically Medical - Instruments & Supplies, with a market capitalization of approximately $176.8M, a beta of 0.42 versus the broader market, a 52-week range of 2.625-6.608, average daily share volume of 154K, a public-listing history dating back to 1994, approximately 80 full-time employees. These structural characteristics shape how KRMD stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.42 indicates KRMD 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 KRMD?
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 KRMD snapshot
As of May 15, 2026, spot at $3.92, ATM IV 24.10%, IV rank 0.78%, expected move 6.91%. The bull call spread on KRMD 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 KRMD specifically: KRMD IV at 24.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a KRMD bull call spread, with a market-implied 1-standard-deviation move of approximately 6.91% (roughly $0.27 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 KRMD expiries trade a higher absolute premium for lower per-day decay. Position sizing on KRMD should anchor to the underlying notional of $3.92 per share and to the trader's directional view on KRMD stock.
KRMD bull call spread setup
The KRMD 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 KRMD near $3.92, the first option leg uses a $3.92 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KRMD 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 KRMD shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.92 | N/A |
| Sell 1 | Call | $4.12 | N/A |
KRMD 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.
KRMD bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on KRMD. 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 KRMD
Bull call spreads on KRMD reduce the cost of a bullish KRMD stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
KRMD thesis for this bull call spread
The market-implied 1-standard-deviation range for KRMD extends from approximately $3.65 on the downside to $4.19 on the upside. A KRMD bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on KRMD, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KRMD IV rank near 0.78% 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 KRMD at 24.10%. As a Healthcare name, KRMD options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KRMD-specific events.
KRMD 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. KRMD positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KRMD alongside the broader basket even when KRMD-specific fundamentals are unchanged. Long-premium structures like a bull call spread on KRMD 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 KRMD chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on KRMD?
- A bull call spread on KRMD is the bull call spread strategy applied to KRMD (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 KRMD stock trading near $3.92, the strikes shown on this page are snapped to the nearest listed KRMD chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KRMD 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 KRMD bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 24.10%), 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 KRMD bull call spread?
- The breakeven for the KRMD 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 KRMD market-implied 1-standard-deviation expected move is approximately 6.91%; 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 KRMD?
- Bull call spreads on KRMD reduce the cost of a bullish KRMD 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 KRMD implied volatility affect this bull call spread?
- KRMD ATM IV is at 24.10% with IV rank near 0.78%, 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.