LOFF Bull Call Spread Strategy
LOFF (Direxion Daily SpaceX Bull 2X ETF), in the Financial Services sector, (Asset Management industry), listed on AMEX.
Direxion Shares ETF Trust - Direxion Daily SpaceX Bull 2X ETF is an exchange traded fund launched by Direxion Investments. It is managed by Rafferty Asset Management, LLC. The fund invests in public equity markets. The fund invests directly and through derivatives in stocks of companies operating across communication services sectors. It uses derivatives such as swaps and options to create its portfolio. It invests in growth and value stocks of companies across diversified market capitalization.
LOFF (Direxion Daily SpaceX Bull 2X ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $1.2M, a beta of 0.00 versus the broader market, a 52-week range of 8.86-46.68, average daily share volume of 1.9M, a public-listing history dating back to 2026. These structural characteristics shape how LOFF stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates LOFF has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. LOFF 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 LOFF?
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.
LOFF snapshot
As of August 14, 2026, spot at $15.04, ATM IV 127.30%, expected move 36.50%. The bull call spread on LOFF 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 35-day expiry.
Why this bull call spread structure on LOFF specifically: IV rank is unavailable in the current snapshot, so regime-based timing for LOFF is inferred from ATM IV at 127.30% alone, with a market-implied 1-standard-deviation move of approximately 36.50% (roughly $5.49 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated LOFF expiries trade a higher absolute premium for lower per-day decay. Position sizing on LOFF should anchor to the underlying notional of $15.04 per share and to the trader's directional view on LOFF stock.
LOFF bull call spread setup
The LOFF 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 LOFF at $15.04 on that close, the first option leg uses a $15.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LOFF chain at a 35-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 LOFF shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $15.00 | $2.38 |
| Sell 1 | Call | $16.00 | $1.90 |
LOFF bull call spread risk and reward
- Net Premium / Debit
- -$47.50
- Max Profit (per contract)
- $52.50
- Max Loss (per contract)
- -$47.50
- Breakeven(s)
- $15.48
- Risk / Reward Ratio
- 1.105
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.
LOFF bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on LOFF. 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 | -99.9% | -$47.50 |
| $3.33 | -77.8% | -$47.50 |
| $6.66 | -55.7% | -$47.50 |
| $9.98 | -33.6% | -$47.50 |
| $13.31 | -11.5% | -$47.50 |
| $16.63 | +10.6% | +$52.50 |
| $19.96 | +32.7% | +$52.50 |
| $23.28 | +54.8% | +$52.50 |
| $26.60 | +76.9% | +$52.50 |
| $29.93 | +99.0% | +$52.50 |
When traders use bull call spread on LOFF
Bull call spreads on LOFF reduce the cost of a bullish LOFF stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
LOFF thesis for this bull call spread
The market-implied 1-standard-deviation range for LOFF extends from approximately $9.55 on the downside to $20.53 on the upside. A LOFF bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on LOFF, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. As a Financial Services name, LOFF options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LOFF-specific events.
LOFF 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. LOFF positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LOFF alongside the broader basket even when LOFF-specific fundamentals are unchanged. Long-premium structures like a bull call spread on LOFF 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 LOFF chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on LOFF?
- A bull call spread on LOFF is the bull call spread strategy applied to LOFF (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 LOFF stock at $15.04 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed LOFF chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LOFF 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 LOFF bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 127.30%), the computed maximum profit is $52.50 per contract and the computed maximum loss is -$47.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a LOFF bull call spread?
- The breakeven for the LOFF bull call spread priced on this page is roughly $15.48 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 LOFF market-implied 1-standard-deviation expected move in the same options snapshot is approximately 36.50%; 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 LOFF?
- Bull call spreads on LOFF reduce the cost of a bullish LOFF 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 LOFF implied volatility affect this bull call spread?
- Current LOFF ATM IV is 127.30%; IV rank context is unavailable in the current snapshot.