LAKE Bull Call Spread Strategy
LAKE (Lakeland Industries, Inc.), in the Consumer Cyclical sector, (Apparel - Manufacturers industry), listed on NASDAQ.
Lakeland Industries, Inc. manufactures and sells industrial protective clothing and accessories for the industrial and public protective clothing market worldwide. It offers limited use/disposable protective clothing, such as coveralls, laboratory coats, shirts, pants, hoods, aprons, sleeves, arm guards, caps, and smocks; high-end chemical protective suits to provide protection from highly concentrated, toxic and/or lethal chemicals, and biological toxins; and firefighting and heat protective apparel to protect against fire. The company also provides durable woven garments, including electrostatic dissipative apparel used in electronics clean rooms; flame resistant meta aramid, para aramid, and FR cotton coveralls/pants/jackets used in petrochemical, refining operations, and electrical utilities; FR fabrics; and cotton and polycotton coveralls, lab coats, pants, and shirts. In addition, it provides high visibility clothing comprising reflective apparel, including vests, T-shirts, sweatshirts, jackets, coats, raingear, jumpsuits, hats, and gloves; and gloves and sleeves that are used in the automotive, glass, and metal fabrication industries. The company sells its products to a network of approximately 1,600 safety and industrial supply distributors through in-house sales teams, customer service group, and independent sales representatives. It serves end users, such as integrated oil, chemical/petrochemical, automobile, steel, glass, construction, smelting, cleanroom, janitorial, pharmaceutical, and high technology electronics manufacturers, as well as scientific, medical laboratories, and the utilities industry; and federal, state, and local governmental agencies and departments.
LAKE (Lakeland Industries, Inc.) trades in the Consumer Cyclical sector, specifically Apparel - Manufacturers, with a market capitalization of approximately $103.5M, a beta of 1.45 versus the broader market, a 52-week range of 7.15-20.5, average daily share volume of 102K, a public-listing history dating back to 1986, approximately 2K full-time employees. These structural characteristics shape how LAKE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.45 indicates LAKE has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. LAKE 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 LAKE?
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 LAKE snapshot
As of May 13, 2026, spot at $10.57, ATM IV 90.40%, IV rank 13.45%, expected move 25.92%. The bull call spread on LAKE 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 36-day expiry.
Why this bull call spread structure on LAKE specifically: LAKE IV at 90.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a LAKE bull call spread, with a market-implied 1-standard-deviation move of approximately 25.92% (roughly $2.74 on the underlying). The 36-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LAKE expiries trade a higher absolute premium for lower per-day decay. Position sizing on LAKE should anchor to the underlying notional of $10.57 per share and to the trader's directional view on LAKE stock.
LAKE bull call spread setup
The LAKE 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 LAKE near $10.57, the first option leg uses a $10.57 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LAKE chain at a 36-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 LAKE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $10.57 | N/A |
| Sell 1 | Call | $11.10 | N/A |
LAKE 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.
LAKE bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on LAKE. 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 LAKE
Bull call spreads on LAKE reduce the cost of a bullish LAKE stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
LAKE thesis for this bull call spread
The market-implied 1-standard-deviation range for LAKE extends from approximately $7.83 on the downside to $13.31 on the upside. A LAKE bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on LAKE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LAKE IV rank near 13.45% 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 LAKE at 90.40%. As a Consumer Cyclical name, LAKE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LAKE-specific events.
LAKE 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. LAKE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LAKE alongside the broader basket even when LAKE-specific fundamentals are unchanged. Long-premium structures like a bull call spread on LAKE 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 LAKE chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on LAKE?
- A bull call spread on LAKE is the bull call spread strategy applied to LAKE (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 LAKE stock trading near $10.57, the strikes shown on this page are snapped to the nearest listed LAKE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LAKE 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 LAKE bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 90.40%), 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 LAKE bull call spread?
- The breakeven for the LAKE 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 LAKE market-implied 1-standard-deviation expected move is approximately 25.92%; 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 LAKE?
- Bull call spreads on LAKE reduce the cost of a bullish LAKE 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 LAKE implied volatility affect this bull call spread?
- LAKE ATM IV is at 90.40% with IV rank near 13.45%, 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.