How are RARE 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 RARE bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 51.60%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.

What is the breakeven for a RARE bull call spread?

The breakeven for the RARE bull call spread priced on this page is roughly $30.90 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 RARE market-implied 1-standard-deviation expected move is approximately 14.79%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.

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

RARE ATM IV is at 51.60% with IV rank near 9.23%, 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.

RARE Bull Call Spread Strategy

RARE (Ultragenyx Pharmaceutical Inc.), in the Healthcare sector, (Biotechnology industry), listed on NASDAQ.

Ultragenyx Pharmaceutical Inc. is a biopharmaceutical firm dedicated to discovering, developing, and commercializing innovative treatments for rare and ultra-rare genetic conditions. Its operations span North America, Europe, and other international markets. The company's portfolio of marketed biologic products addresses several serious diseases. This includes Crysvita (burosumab), an antibody that targets fibroblast growth factor 23, used to treat X-linked hypophosphatemia and tumor-induced osteomalacia. Mepsevii offers enzyme replacement therapy for both pediatric and adult patients suffering from Mucopolysaccharidosis VII. Dojolvi is available for individuals with long-chain fatty acid oxidation disorders, while Evkeeza (evinacumab) provides a treatment option for homozygous familial hypercholesterolemia.

RARE (Ultragenyx Pharmaceutical Inc.) trades in the Healthcare sector, specifically Biotechnology, with a market capitalization of approximately $3.03B, a beta of 0.38 versus the broader market, a 52-week range of 18.29-42.37, average daily share volume of 2.0M, a public-listing history dating back to 2014, approximately 1K full-time employees. These structural characteristics shape how RARE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.

A beta of 0.38 indicates RARE 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 RARE?

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 RARE snapshot

As of June 29, 2026, spot at $30.85, ATM IV 51.60%, IV rank 9.23%, expected move 14.79%. The bull call spread on RARE 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 53-day expiry.

Why this bull call spread structure on RARE specifically: RARE IV at 51.60% is on the cheap side of its 1-year range, which favors premium-buying structures like a RARE bull call spread, with a market-implied 1-standard-deviation move of approximately 14.79% (roughly $4.56 on the underlying). The 53-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RARE expiries trade a higher absolute premium for lower per-day decay. Position sizing on RARE should anchor to the underlying notional of $30.85 per share and to the trader's directional view on RARE stock.

RARE bull call spread setup

The RARE 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 RARE near $30.85, the first option leg uses a $30.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RARE chain at a 53-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 RARE shares for the stock leg in covered calls and collars).

Action	Type	Strike / Basis	Premium (est)
Buy 1	Call	$30.00	$4.15
Sell 1	Call	$32.50	$3.25

RARE bull call spread risk and reward

Net Premium / Debit: -$90.00
Max Profit (per contract): $160.00
Max Loss (per contract): -$90.00
Breakeven(s): $30.90
Risk / Reward Ratio: 1.778

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.

RARE bull call spread payoff curve

Modeled P&L at expiration across a range of underlying prices for the bull call spread on RARE. 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.

P&L at expiration across the modeled underlying-price range. Green shading marks profitable regions, red shading marks loss regions. Dotted purple verticals mark breakevens; the solid dark vertical marks current spot.

Underlying Price	% From Spot	P&L at Expiration
$0.01	-100.0%	-$90.00
$6.83	-77.9%	-$90.00
$13.65	-55.8%	-$90.00
$20.47	-33.6%	-$90.00
$27.29	-11.5%	-$90.00
$34.11	+10.6%	+$160.00
$40.93	+32.7%	+$160.00
$47.75	+54.8%	+$160.00
$54.57	+76.9%	+$160.00
$61.39	+99.0%	+$160.00

When traders use bull call spread on RARE

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

RARE thesis for this bull call spread

The market-implied 1-standard-deviation range for RARE extends from approximately $26.29 on the downside to $35.41 on the upside. A RARE bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on RARE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RARE IV rank near 9.23% 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 RARE at 51.60%. As a Healthcare name, RARE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RARE-specific events.

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

Frequently asked questions

What is a bull call spread on RARE?: A bull call spread on RARE is the bull call spread strategy applied to RARE (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 RARE stock trading near $30.85, the strikes shown on this page are snapped to the nearest listed RARE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
How are RARE 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 RARE bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 51.60%), the computed maximum profit is $160.00 per contract and the computed maximum loss is -$90.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
What is the breakeven for a RARE bull call spread?: The breakeven for the RARE bull call spread priced on this page is roughly $30.90 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 RARE market-implied 1-standard-deviation expected move is approximately 14.79%; 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 RARE?: Bull call spreads on RARE reduce the cost of a bullish RARE 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 RARE implied volatility affect this bull call spread?: RARE ATM IV is at 51.60% with IV rank near 9.23%, 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.