MCRI Bull Call Spread Strategy
MCRI (Monarch Casino & Resort, Inc.), in the Consumer Cyclical sector, (Gambling, Resorts & Casinos industry), listed on NASDAQ.
Monarch Casino & Resort, Inc. (MCRI) is a company that, through its various subsidiaries, owns and manages two prominent hotel and casino destinations: the Atlantis Casino Resort Spa in Reno, Nevada, and the Monarch Casino Resort Spa Black Hawk located in Black Hawk, Colorado. As of December 31, 2021, the Atlantis Casino Resort Spa presented a wide array of facilities. Its gaming area extended across approximately 61,000 square feet, featuring roughly 1,400 slot and video poker machines, alongside around 37 table games, including popular choices such as blackjack, craps, and roulette. The property also housed a race and sports book, an always-open live keno lounge, and a dedicated poker room. Beyond the gaming, Atlantis offered 818 guest accommodations, eight distinct dining establishments, and two gourmet coffee and pastry shops. For wellness and events, there was a 30,000 square-foot health spa and salon complete with an indoor pool, two retail outlets selling apparel and gifts, an 8,000 square-foot family entertainment zone, and about 52,000 square feet designated for banquets, conventions, and meetings.
MCRI (Monarch Casino & Resort, Inc.) trades in the Consumer Cyclical sector, specifically Gambling, Resorts & Casinos, with a market capitalization of approximately $2.38B, a trailing P/E of 21.89, a beta of 1.35 versus the broader market, a 52-week range of 85.66-134.8, average daily share volume of 158K, a public-listing history dating back to 1993, approximately 3K full-time employees. These structural characteristics shape how MCRI stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.35 indicates MCRI has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. MCRI 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 MCRI?
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 MCRI snapshot
As of June 30, 2026, spot at $131.81, ATM IV 40.50%, IV rank 6.56%, expected move 11.61%. The bull call spread on MCRI 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 17-day expiry.
Why this bull call spread structure on MCRI specifically: MCRI IV at 40.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a MCRI bull call spread, with a market-implied 1-standard-deviation move of approximately 11.61% (roughly $15.30 on the underlying). The 17-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated MCRI expiries trade a higher absolute premium for lower per-day decay. Position sizing on MCRI should anchor to the underlying notional of $131.81 per share and to the trader's directional view on MCRI stock.
MCRI bull call spread setup
The MCRI 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 MCRI near $131.81, the first option leg uses a $130.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed MCRI chain at a 17-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 MCRI shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $130.00 | $6.35 |
| Sell 1 | Call | $140.00 | $1.53 |
MCRI bull call spread risk and reward
- Net Premium / Debit
- -$482.50
- Max Profit (per contract)
- $517.50
- Max Loss (per contract)
- -$482.50
- Breakeven(s)
- $134.83
- Risk / Reward Ratio
- 1.073
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.
MCRI bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on MCRI. 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% | -$482.50 |
| $29.15 | -77.9% | -$482.50 |
| $58.30 | -55.8% | -$482.50 |
| $87.44 | -33.7% | -$482.50 |
| $116.58 | -11.6% | -$482.50 |
| $145.72 | +10.6% | +$517.50 |
| $174.87 | +32.7% | +$517.50 |
| $204.01 | +54.8% | +$517.50 |
| $233.15 | +76.9% | +$517.50 |
| $262.30 | +99.0% | +$517.50 |
When traders use bull call spread on MCRI
Bull call spreads on MCRI reduce the cost of a bullish MCRI stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
MCRI thesis for this bull call spread
The market-implied 1-standard-deviation range for MCRI extends from approximately $116.51 on the downside to $147.11 on the upside. A MCRI bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on MCRI, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current MCRI IV rank near 6.56% 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 MCRI at 40.50%. As a Consumer Cyclical name, MCRI options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to MCRI-specific events.
MCRI 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. MCRI positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move MCRI alongside the broader basket even when MCRI-specific fundamentals are unchanged. Long-premium structures like a bull call spread on MCRI 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 MCRI chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on MCRI?
- A bull call spread on MCRI is the bull call spread strategy applied to MCRI (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 MCRI stock trading near $131.81, the strikes shown on this page are snapped to the nearest listed MCRI chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are MCRI 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 MCRI bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 40.50%), the computed maximum profit is $517.50 per contract and the computed maximum loss is -$482.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a MCRI bull call spread?
- The breakeven for the MCRI bull call spread priced on this page is roughly $134.83 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 MCRI market-implied 1-standard-deviation expected move is approximately 11.61%; 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 MCRI?
- Bull call spreads on MCRI reduce the cost of a bullish MCRI 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 MCRI implied volatility affect this bull call spread?
- MCRI ATM IV is at 40.50% with IV rank near 6.56%, 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.