OM Bull Call Spread Strategy
OM (Outset Medical, Inc.), in the Healthcare sector, (Medical - Devices industry), listed on NASDAQ.
Outset Medical, Inc., a medical technology company, develops a hemodialysis system for dialysis. It provides the Tablo Hemodialysis System, which comprises a compact console with integrated water purification, on-demand dialysate production, and software and connectivity capabilities for dialysis care in acute and home settings. The company was formerly known as Home Dialysis Plus, Ltd. and changed its name to Outset Medical, Inc. in January 2015. Outset Medical, Inc. was incorporated in 2003 and is headquartered in San Jose, California.
OM (Outset Medical, Inc.) trades in the Healthcare sector, specifically Medical - Devices, with a market capitalization of approximately $72.1M, a beta of 1.91 versus the broader market, a 52-week range of 3-21.98, average daily share volume of 190K, a public-listing history dating back to 2020, approximately 354 full-time employees. These structural characteristics shape how OM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.91 indicates OM 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 OM?
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 OM snapshot
As of May 15, 2026, spot at $3.67, ATM IV 220.30%, IV rank 42.44%, expected move 63.16%. The bull call spread on OM 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 OM specifically: OM IV at 220.30% 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 63.16% (roughly $2.32 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 OM expiries trade a higher absolute premium for lower per-day decay. Position sizing on OM should anchor to the underlying notional of $3.67 per share and to the trader's directional view on OM stock.
OM bull call spread setup
The OM 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 OM near $3.67, the first option leg uses a $3.67 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OM 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 OM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $3.67 | N/A |
| Sell 1 | Call | $3.85 | N/A |
OM 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.
OM bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on OM. 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 OM
Bull call spreads on OM reduce the cost of a bullish OM stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
OM thesis for this bull call spread
The market-implied 1-standard-deviation range for OM extends from approximately $1.35 on the downside to $5.99 on the upside. A OM bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on OM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current OM IV rank near 42.44% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on OM should anchor more to the directional view and the expected-move geometry. As a Healthcare name, OM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OM-specific events.
OM 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. OM positions also carry Healthcare sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OM alongside the broader basket even when OM-specific fundamentals are unchanged. Long-premium structures like a bull call spread on OM 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 OM chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on OM?
- A bull call spread on OM is the bull call spread strategy applied to OM (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 OM stock trading near $3.67, the strikes shown on this page are snapped to the nearest listed OM chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OM 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 OM bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 220.30%), 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 OM bull call spread?
- The breakeven for the OM bull call spread priced on this page is no defined breakeven on the modeled curve 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 OM market-implied 1-standard-deviation expected move is approximately 63.16%; 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 OM?
- Bull call spreads on OM reduce the cost of a bullish OM 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 OM implied volatility affect this bull call spread?
- OM ATM IV is at 220.30% with IV rank near 42.44%, 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.