OXSQ Bull Call Spread Strategy
OXSQ (Oxford Square Capital Corp.), in the Financial Services sector, (Asset Management industry), listed on NASDAQ.
Oxford Square Capital Corp. is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million.
OXSQ (Oxford Square Capital Corp.) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $163.7M, a beta of 0.49 versus the broader market, a 52-week range of 1.56-2.5, average daily share volume of 1.6M, a public-listing history dating back to 2003. These structural characteristics shape how OXSQ stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.49 indicates OXSQ has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure. OXSQ 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 OXSQ?
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 OXSQ snapshot
As of May 15, 2026, spot at $1.65, ATM IV 408.80%, IV rank 100.00%, expected move 117.20%. The bull call spread on OXSQ 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 OXSQ specifically: OXSQ IV at 408.80% is rich versus its 1-year range, which makes a premium-buying OXSQ bull call spread relatively expensive in absolute-cost terms, with a market-implied 1-standard-deviation move of approximately 117.20% (roughly $1.93 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 OXSQ expiries trade a higher absolute premium for lower per-day decay. Position sizing on OXSQ should anchor to the underlying notional of $1.65 per share and to the trader's directional view on OXSQ stock.
OXSQ bull call spread setup
The OXSQ 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 OXSQ near $1.65, the first option leg uses a $1.65 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed OXSQ 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 OXSQ shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $1.65 | N/A |
| Sell 1 | Call | $1.73 | N/A |
OXSQ 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.
OXSQ bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on OXSQ. 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 OXSQ
Bull call spreads on OXSQ reduce the cost of a bullish OXSQ stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
OXSQ thesis for this bull call spread
The market-implied 1-standard-deviation range for OXSQ extends from approximately $-0.28 on the downside to $3.58 on the upside. A OXSQ bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on OXSQ, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current OXSQ IV rank near 100.00% sits in the upper third of its 1-year distribution, which historically reverts; this raises the bar for premium-buying structures and lowers it for premium-selling structures on OXSQ at 408.80%. As a Financial Services name, OXSQ options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to OXSQ-specific events.
OXSQ 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. OXSQ positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move OXSQ alongside the broader basket even when OXSQ-specific fundamentals are unchanged. Long-premium structures like a bull call spread on OXSQ 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 OXSQ chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on OXSQ?
- A bull call spread on OXSQ is the bull call spread strategy applied to OXSQ (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 OXSQ stock trading near $1.65, the strikes shown on this page are snapped to the nearest listed OXSQ chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are OXSQ 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 OXSQ bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 408.80%), 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 OXSQ bull call spread?
- The breakeven for the OXSQ 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 OXSQ market-implied 1-standard-deviation expected move is approximately 117.20%; 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 OXSQ?
- Bull call spreads on OXSQ reduce the cost of a bullish OXSQ 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 OXSQ implied volatility affect this bull call spread?
- OXSQ ATM IV is at 408.80% with IV rank near 100.00%, which is elevated relative to its 1-year range. Premium-selling structures (covered call, cash-secured put, iron condor) generally look more attractive when IV rank is high; premium-buying structures (long call, long put, debit spreads) are more expensive in that regime.