RAM Bull Call Spread Strategy
RAM (Roundhill T-REX 2X Long DRAM Daily Target ETF), in the Financial Services sector, (Asset Management industry), listed on CBOE.
RAM seeking daily leveraged exposure is very different from most other exchange-traded funds. As a result, RAM may be riskier than alternatives that do not use leverage. The ETF's investment objective is to magnify (200%) the daily performance of the shares of the Issuers own Memory ETF, ticker: DRAM. The return for investors that invest for periods longer or shorter than a trading day should not be expected to be 200% of the performance of DRAM for the period. The return of the Fund for a period longer than a trading day will be the result of each trading day's compounded return over the period, which will very likely differ from 200% of the return of DRAM for that period. Longer holding periods, higher volatility of DRAM, and leverage increase the impact of compounding on an investor's returns.
RAM (Roundhill T-REX 2X Long DRAM Daily Target ETF) trades in the Financial Services sector, specifically Asset Management, with a market capitalization of approximately $457.5M, a beta of 0.00 versus the broader market, a 52-week range of 8.29-33.11, average daily share volume of 16.7M, a public-listing history dating back to 2026. These structural characteristics shape how RAM stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.00 indicates RAM has historically moved less than the broader market, dampening realized volatility and producing tighter expected-move bands per unit of dollar exposure.
What is a bull call spread on RAM?
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.
RAM snapshot
As of August 14, 2026, spot at $13.11, ATM IV 132.50%, IV rank 51.14%, expected move 37.99%. The bull call spread on RAM below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 35-day expiry.
Why this bull call spread structure on RAM specifically: RAM IV at 132.50% 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 37.99% (roughly $4.98 on the underlying). The 35-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RAM expiries trade a higher absolute premium for lower per-day decay. Position sizing on RAM should anchor to the underlying notional of $13.11 per share and to the trader's directional view on RAM stock.
RAM bull call spread setup
The RAM bull call spread below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With RAM at $13.11 on that close, the first option leg uses a $13.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RAM chain at a 35-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 RAM shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $13.00 | $2.18 |
| Sell 1 | Call | $14.00 | $1.78 |
RAM bull call spread risk and reward
- Net Premium / Debit
- -$40.00
- Max Profit (per contract)
- $60.00
- Max Loss (per contract)
- -$40.00
- Breakeven(s)
- $13.40
- Risk / Reward Ratio
- 1.500
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.
RAM bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on RAM. 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% | -$40.00 |
| $2.91 | -77.8% | -$40.00 |
| $5.81 | -55.7% | -$40.00 |
| $8.70 | -33.6% | -$40.00 |
| $11.60 | -11.5% | -$40.00 |
| $14.50 | +10.6% | +$60.00 |
| $17.40 | +32.7% | +$60.00 |
| $20.29 | +54.8% | +$60.00 |
| $23.19 | +76.9% | +$60.00 |
| $26.09 | +99.0% | +$60.00 |
When traders use bull call spread on RAM
Bull call spreads on RAM reduce the cost of a bullish RAM stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
RAM thesis for this bull call spread
The market-implied 1-standard-deviation range for RAM extends from approximately $8.13 on the downside to $18.09 on the upside. A RAM bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on RAM, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RAM IV rank near 51.14% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on RAM should anchor more to the directional view and the expected-move geometry. As a Financial Services name, RAM options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RAM-specific events.
RAM 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. RAM positions also carry Financial Services sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RAM alongside the broader basket even when RAM-specific fundamentals are unchanged. Long-premium structures like a bull call spread on RAM 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 RAM chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on RAM?
- A bull call spread on RAM is the bull call spread strategy applied to RAM (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 RAM stock at $13.11 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed RAM chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are RAM 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 RAM bull call spread priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 132.50%), the computed maximum profit is $60.00 per contract and the computed maximum loss is -$40.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a RAM bull call spread?
- The breakeven for the RAM bull call spread priced on this page is roughly $13.40 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The RAM market-implied 1-standard-deviation expected move in the same options snapshot is approximately 37.99%; 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 RAM?
- Bull call spreads on RAM reduce the cost of a bullish RAM 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 RAM implied volatility affect this bull call spread?
- RAM ATM IV is at 132.50% with IV rank near 51.14%, 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.