How are METC 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 METC bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 82.20%), the computed maximum profit is $62.50 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a METC bull call spread?

The breakeven for the METC bull call spread priced on this page is roughly $14.38 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 METC market-implied 1-standard-deviation expected move is approximately 23.57%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

How does current METC implied volatility affect this bull call spread?

METC ATM IV is at 82.20% with IV rank near 11.37%, 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.

METC Bull Call Spread Strategy

METC (Ramaco Resources, Inc.), in the Energy sector, (Coal industry), listed on NASDAQ.

Ramaco Resources, Inc. produces and sells metallurgical coal. The company's development portfolio includes the Elk Creek project consisting of approximately 20,200 acres of controlled mineral and 16 seams located in southern West Virginia; the Berwind property comprising approximately 41,300 acres of controlled mineral and an area of Squire Jim seam coal deposits, which is situated on the border of West Virginia and Virginia; the Knox Creek property consisting of approximately 62,100 acres of controlled mineral that is located in Virginia; and the RAM Mine property comprising approximately 1,570 acres of controlled mineral, which is situated in southwestern Pennsylvania. The company serves blast furnace steel mills and coke plants in the United States, as well as international metallurgical coal consumers. The company was founded in 2015 and is headquartered in Lexington, Kentucky.

METC (Ramaco Resources, Inc.) trades in the Energy sector, specifically Coal, with a market capitalization of approximately $856.8M, a beta of 1.35 versus the broader market, a 52-week range of 8.51-57.8, average daily share volume of 1.8M, a public-listing history dating back to 2017, approximately 984 full-time employees. These structural characteristics shape how METC stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 1.35 indicates METC has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position. METC 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 METC?

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 METC snapshot

As of May 15, 2026, spot at $14.42, ATM IV 82.20%, IV rank 11.37%, expected move 23.57%. The bull call spread on METC 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 34-day expiry.

Why this bull call spread structure on METC specifically: METC IV at 82.20% is on the cheap side of its 1-year range, which favors premium-buying structures like a METC bull call spread, with a market-implied 1-standard-deviation move of approximately 23.57% (roughly $3.40 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated METC expiries trade a higher absolute premium for lower per-day decay. Position sizing on METC should anchor to the underlying notional of $14.42 per share and to the trader's directional view on METC stock.

METC bull call spread setup

The METC 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 METC near $14.42, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed METC chain at a 34-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 METC shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$14.00	$1.65
Sell 1	Call	$15.00	$1.28

METC bull call spread risk and reward

Net Premium / Debit: -$37.50
Max Profit (per contract): $62.50
Max Loss (per contract): -$37.50
Breakeven(s): $14.38
Risk / Reward Ratio: 1.667

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.

METC bull call spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bull call spread on METC. 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%	-$37.50
$3.20	-77.8%	-$37.50
$6.38	-55.7%	-$37.50
$9.57	-33.6%	-$37.50
$12.76	-11.5%	-$37.50
$15.95	+10.6%	+$62.50
$19.13	+32.7%	+$62.50
$22.32	+54.8%	+$62.50
$25.51	+76.9%	+$62.50
$28.70	+99.0%	+$62.50

When traders use bull call spread on METC

Bull call spreads on METC reduce the cost of a bullish METC stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.

METC thesis for this bull call spread

The market-implied 1-standard-deviation range for METC extends from approximately $11.02 on the downside to $17.82 on the upside. A METC bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on METC, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current METC IV rank near 11.37% 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 METC at 82.20%. As a Energy name, METC options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to METC-specific events.

METC 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. METC positions also carry Energy sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move METC alongside the broader basket even when METC-specific fundamentals are unchanged. Long-premium structures like a bull call spread on METC 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 METC chain quotes before placing a trade.

Frequently asked questions

What is a bull call spread on METC?: A bull call spread on METC is the bull call spread strategy applied to METC (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 METC stock trading near $14.42, the strikes shown on this page are snapped to the nearest listed METC chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are METC 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 METC bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 82.20%), the computed maximum profit is $62.50 per contract and the computed maximum loss is -$37.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a METC bull call spread?: The breakeven for the METC bull call spread priced on this page is roughly $14.38 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 METC market-implied 1-standard-deviation expected move is approximately 23.57%; 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 METC?: Bull call spreads on METC reduce the cost of a bullish METC 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 METC implied volatility affect this bull call spread?: METC ATM IV is at 82.20% with IV rank near 11.37%, 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.