REE Bull Call Spread Strategy
REE (REE Automotive Ltd.), in the Consumer Cyclical sector, (Auto - Recreational Vehicles industry), listed on NASDAQ.
REE Automotive Ltd. operates in the e-mobility business. The company develops REEcorner technology, which integrates vehicle drive components, including steering, braking, suspension, powertrain, and control into the arch of the wheel. The company also develops REEboard, a flat and modular EV chassis. The company is headquartered in Herzliya, Israel.
REE (REE Automotive Ltd.) trades in the Consumer Cyclical sector, specifically Auto - Recreational Vehicles, with a market capitalization of approximately $11.8M, a beta of 2.41 versus the broader market, a 52-week range of 0.4-2.42, average daily share volume of 43K, a public-listing history dating back to 2021, approximately 244 full-time employees. These structural characteristics shape how REE stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 2.41 indicates REE 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 REE?
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 REE snapshot
As of May 15, 2026, spot at $0.45, ATM IV 21.30%, IV rank 0.80%, expected move 6.11%. The bull call spread on REE 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 REE specifically: REE IV at 21.30% is on the cheap side of its 1-year range, which favors premium-buying structures like a REE bull call spread, with a market-implied 1-standard-deviation move of approximately 6.11% (roughly $0.03 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 REE expiries trade a higher absolute premium for lower per-day decay. Position sizing on REE should anchor to the underlying notional of $0.45 per share and to the trader's directional view on REE stock.
REE bull call spread setup
The REE 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 REE near $0.45, the first option leg uses a $0.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed REE 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 REE shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $0.45 | N/A |
| Sell 1 | Call | $0.47 | N/A |
REE 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.
REE bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on REE. 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 REE
Bull call spreads on REE reduce the cost of a bullish REE stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
REE thesis for this bull call spread
The market-implied 1-standard-deviation range for REE extends from approximately $0.42 on the downside to $0.48 on the upside. A REE bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on REE, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current REE IV rank near 0.80% 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 REE at 21.30%. As a Consumer Cyclical name, REE options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to REE-specific events.
REE 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. REE positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move REE alongside the broader basket even when REE-specific fundamentals are unchanged. Long-premium structures like a bull call spread on REE 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 REE chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on REE?
- A bull call spread on REE is the bull call spread strategy applied to REE (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 REE stock trading near $0.45, the strikes shown on this page are snapped to the nearest listed REE chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are REE 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 REE bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 21.30%), 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 REE bull call spread?
- The breakeven for the REE 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 REE market-implied 1-standard-deviation expected move is approximately 6.11%; 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 REE?
- Bull call spreads on REE reduce the cost of a bullish REE 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 REE implied volatility affect this bull call spread?
- REE ATM IV is at 21.30% with IV rank near 0.80%, 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.