NVTS Bull Call Spread Strategy
NVTS (Navitas Semiconductor Corporation), in the Technology sector, (Semiconductors industry), listed on NASDAQ.
Navitas Semiconductor Corporation designs, develops, and sells gallium nitride (GaN) power integrated circuits in China, the United States, Taiwan, Korea, and internationally. The company was incorporated in 2013 and is based in Dublin, Ireland.
NVTS (Navitas Semiconductor Corporation) trades in the Technology sector, specifically Semiconductors, with a market capitalization of approximately $4.95B, a beta of 3.62 versus the broader market, a 52-week range of 1.88-23.82, average daily share volume of 27.4M, a public-listing history dating back to 2021, approximately 280 full-time employees. These structural characteristics shape how NVTS stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 3.62 indicates NVTS has historically moved more than the broader market, amplifying both the directional payoff and the realized volatility relative to an index-equivalent position.
What is a bull call spread on NVTS?
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 NVTS snapshot
As of May 15, 2026, spot at $21.33, ATM IV 135.65%, IV rank 49.38%, expected move 38.89%. The bull call spread on NVTS 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 28-day expiry.
Why this bull call spread structure on NVTS specifically: NVTS IV at 135.65% 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 38.89% (roughly $8.30 on the underlying). The 28-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated NVTS expiries trade a higher absolute premium for lower per-day decay. Position sizing on NVTS should anchor to the underlying notional of $21.33 per share and to the trader's directional view on NVTS stock.
NVTS bull call spread setup
The NVTS 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 NVTS near $21.33, the first option leg uses a $21.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed NVTS chain at a 28-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 NVTS shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $21.00 | $3.38 |
| Sell 1 | Call | $22.00 | $2.98 |
NVTS bull call spread risk and reward
- Net Premium / Debit
- -$39.50
- Max Profit (per contract)
- $60.50
- Max Loss (per contract)
- -$39.50
- Breakeven(s)
- $21.40
- Risk / Reward Ratio
- 1.532
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.
NVTS bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on NVTS. 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% | -$39.50 |
| $4.73 | -77.8% | -$39.50 |
| $9.44 | -55.7% | -$39.50 |
| $14.16 | -33.6% | -$39.50 |
| $18.87 | -11.5% | -$39.50 |
| $23.59 | +10.6% | +$60.50 |
| $28.30 | +32.7% | +$60.50 |
| $33.02 | +54.8% | +$60.50 |
| $37.73 | +76.9% | +$60.50 |
| $42.45 | +99.0% | +$60.50 |
When traders use bull call spread on NVTS
Bull call spreads on NVTS reduce the cost of a bullish NVTS stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
NVTS thesis for this bull call spread
The market-implied 1-standard-deviation range for NVTS extends from approximately $13.03 on the downside to $29.63 on the upside. A NVTS bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on NVTS, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current NVTS IV rank near 49.38% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on NVTS should anchor more to the directional view and the expected-move geometry. As a Technology name, NVTS options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to NVTS-specific events.
NVTS 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. NVTS positions also carry Technology sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move NVTS alongside the broader basket even when NVTS-specific fundamentals are unchanged. Long-premium structures like a bull call spread on NVTS 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 NVTS chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on NVTS?
- A bull call spread on NVTS is the bull call spread strategy applied to NVTS (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 NVTS stock trading near $21.33, the strikes shown on this page are snapped to the nearest listed NVTS chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are NVTS 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 NVTS bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 135.65%), the computed maximum profit is $60.50 per contract and the computed maximum loss is -$39.50 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a NVTS bull call spread?
- The breakeven for the NVTS bull call spread priced on this page is roughly $21.40 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 NVTS market-implied 1-standard-deviation expected move is approximately 38.89%; 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 NVTS?
- Bull call spreads on NVTS reduce the cost of a bullish NVTS 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 NVTS implied volatility affect this bull call spread?
- NVTS ATM IV is at 135.65% with IV rank near 49.38%, 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.