LCII Bull Call Spread Strategy
LCII (LCI Industries), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NYSE.
LCI Industries, operating globally through its subsidiaries, specializes in producing and delivering a wide array of components for recreational vehicle (RV) manufacturers and various associated industries. The company's operations are divided into two primary divisions: Original Equipment Manufacturers (OEM) and Aftermarket. The Original Equipment Manufacturers (OEM) segment is responsible for the design, production, and distribution of a comprehensive portfolio of engineered components. This extensive range covers structural elements like steel chassis and suspension solutions; functional systems such as slide-out mechanisms, leveling systems, and various doors; interior amenities including thermoformed bath/kitchen products, furniture, and mattresses; and exterior features like windows, awnings, and towing products. The segment also supplies advanced electronics, appliances, climate control units, and entertainment systems. It primarily serves primary manufacturers in the recreational vehicle sector, encompassing various trailer types and campers, alongside a broad spectrum of associated industries.
LCII (LCI Industries) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $2.33B, a trailing P/E of 11.52, a beta of 1.18 versus the broader market, a 52-week range of 84.33-159.66, average daily share volume of 389K, a public-listing history dating back to 1985, approximately 12K full-time employees. These structural characteristics shape how LCII stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.18 places LCII roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 11.52 is on the value side, where IV often compresses outside event windows because forward growth expectations are already discounted into the share price. LCII 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 LCII?
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 LCII snapshot
As of June 26, 2026, spot at $95.12, ATM IV 40.10%, IV rank 6.44%, expected move 11.50%. The bull call spread on LCII 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 18-day expiry.
Why this bull call spread structure on LCII specifically: LCII IV at 40.10% is on the cheap side of its 1-year range, which favors premium-buying structures like a LCII bull call spread, with a market-implied 1-standard-deviation move of approximately 11.50% (roughly $10.94 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LCII expiries trade a higher absolute premium for lower per-day decay. Position sizing on LCII should anchor to the underlying notional of $95.12 per share and to the trader's directional view on LCII stock.
LCII bull call spread setup
The LCII 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 LCII near $95.12, the first option leg uses a $95.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LCII chain at a 18-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 LCII shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $95.00 | $5.85 |
| Sell 1 | Call | $100.00 | $3.10 |
LCII bull call spread risk and reward
- Net Premium / Debit
- -$275.00
- Max Profit (per contract)
- $225.00
- Max Loss (per contract)
- -$275.00
- Breakeven(s)
- $97.75
- Risk / Reward Ratio
- 0.818
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.
LCII bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on LCII. 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% | -$275.00 |
| $21.04 | -77.9% | -$275.00 |
| $42.07 | -55.8% | -$275.00 |
| $63.10 | -33.7% | -$275.00 |
| $84.13 | -11.6% | -$275.00 |
| $105.16 | +10.6% | +$225.00 |
| $126.19 | +32.7% | +$225.00 |
| $147.22 | +54.8% | +$225.00 |
| $168.25 | +76.9% | +$225.00 |
| $189.28 | +99.0% | +$225.00 |
When traders use bull call spread on LCII
Bull call spreads on LCII reduce the cost of a bullish LCII stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
LCII thesis for this bull call spread
The market-implied 1-standard-deviation range for LCII extends from approximately $84.18 on the downside to $106.06 on the upside. A LCII bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on LCII, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LCII IV rank near 6.44% 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 LCII at 40.10%. As a Consumer Cyclical name, LCII options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LCII-specific events.
LCII 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. LCII positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LCII alongside the broader basket even when LCII-specific fundamentals are unchanged. Long-premium structures like a bull call spread on LCII 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 LCII chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on LCII?
- A bull call spread on LCII is the bull call spread strategy applied to LCII (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 LCII stock trading near $95.12, the strikes shown on this page are snapped to the nearest listed LCII chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are LCII 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 LCII bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 40.10%), the computed maximum profit is $225.00 per contract and the computed maximum loss is -$275.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LCII bull call spread?
- The breakeven for the LCII bull call spread priced on this page is roughly $97.75 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 LCII market-implied 1-standard-deviation expected move is approximately 11.50%; 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 LCII?
- Bull call spreads on LCII reduce the cost of a bullish LCII 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 LCII implied volatility affect this bull call spread?
- LCII ATM IV is at 40.10% with IV rank near 6.44%, 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.