LUNG Bull Call Spread Strategy
LUNG (Pulmonx Corporation), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Pulmonx Corporation is a biomedical technology firm dedicated to developing and commercializing advanced, less invasive devices for managing chronic obstructive pulmonary diseases. Its primary offering, the Zephyr Endobronchial Valve, is specifically engineered to treat bronchoscopic hyperinflation in adults afflicted with severe emphysema. Complementing its therapeutic solutions, the company also provides the Chartis Pulmonary Assessment System. This system features a specialized balloon catheter and console, fitted with flow and pressure sensors, which is instrumental in evaluating the presence of collateral ventilation in patients. Additionally, Pulmonx offers the StratX Lung Analysis Platform, a cloud-based service that conducts quantitative computed tomography (CT) analysis. This platform delivers vital data concerning emphysema destruction, fissure completeness, and lobar volume, thereby aiding clinicians in accurately identifying the most suitable target lobes for treatment with Zephyr Valves.
LUNG (Pulmonx Corporation) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $96.7M, a beta of 0.29 versus the broader market, a 52-week range of 1.13-2.89, average daily share volume of 516K, a public-listing history dating back to 2020, approximately 296 full-time employees. These structural characteristics shape how LUNG stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.29 indicates LUNG 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 LUNG?
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.
LUNG snapshot
As of August 14, 2026, spot at $2.40, ATM IV 144.70%, IV rank 32.85%, expected move 41.48%. The bull call spread on LUNG below is built from the 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 LUNG specifically: LUNG IV at 144.70% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 41.48% (roughly $1.00 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 LUNG expiries trade a higher absolute premium for lower per-day decay. Position sizing on LUNG should anchor to the underlying notional of $2.40 per share and to the trader's directional view on LUNG stock.
LUNG bull call spread setup
The LUNG 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 LUNG at $2.40 on that close, the first option leg uses a $2.40 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed LUNG 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 LUNG shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $2.40 | N/A |
| Sell 1 | Call | $2.52 | N/A |
LUNG 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.
LUNG bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on LUNG. 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 LUNG
Bull call spreads on LUNG reduce the cost of a bullish LUNG stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
LUNG thesis for this bull call spread
The market-implied 1-standard-deviation range for LUNG extends from approximately $1.40 on the downside to $3.40 on the upside. A LUNG bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on LUNG, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current LUNG IV rank near 32.85% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on LUNG should anchor more to the directional view and the expected-move geometry. As a Healthcare name, LUNG options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to LUNG-specific events.
LUNG 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. LUNG positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move LUNG alongside the broader basket even when LUNG-specific fundamentals are unchanged. Long-premium structures like a bull call spread on LUNG 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 LUNG chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on LUNG?
- A bull call spread on LUNG is the bull call spread strategy applied to LUNG (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 LUNG stock at $2.40 on the most recent close, the strikes shown on this page are snapped to the nearest listed LUNG chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are LUNG 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 LUNG bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 144.70%), 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 LUNG bull call spread?
- The breakeven for the LUNG bull call spread priced on this page is no defined breakeven on the modeled curve at expiration, derived from the 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 LUNG market-implied 1-standard-deviation expected move in the same options snapshot is approximately 41.48%; 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 LUNG?
- Bull call spreads on LUNG reduce the cost of a bullish LUNG 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 LUNG implied volatility affect this bull call spread?
- LUNG ATM IV is at 144.70% with IV rank near 32.85%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.