RICK Bull Call Spread Strategy
RICK (RCI Hospitality Holdings, Inc.), in the Consumer Cyclical sector, (Restaurants industry), listed on NASDAQ.
RCI Hospitality Holdings, Inc., operating through its subsidiaries, manages a diverse portfolio of hospitality and related enterprises across the United States. Its activities are organized into three main divisions: Nightclubs, Bombshells, and an "Other" segment. The company's core business involves owning and operating numerous high-end adult entertainment nightclubs, primarily catering to business professionals. These venues include well-known establishments such as Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Temptations Adult Cabaret, Foxy's Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, and Kappa Men's Club. Complementing its adult entertainment venues, RCI also runs a chain of restaurants and sports bars under the Bombshells Restaurant & Bar brand, as well as the Studio 80 dance club. The "Other" segment comprises various media and trade-related assets, including two national industry trade publications focused on the adult nightclub and retail product industries, a national industry convention and tradeshow, two national industry award shows, and approximately twelve specialized industry and social media websites.
RICK (RCI Hospitality Holdings, Inc.) trades in the Consumer Cyclical sector, specifically Restaurants, with a market capitalization of approximately $206.3M, a beta of 0.78 versus the broader market, a 52-week range of 20.76-41.37, average daily share volume of 53K, a public-listing history dating back to 1995, approximately 4K full-time employees. These structural characteristics shape how RICK stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.78 places RICK roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. RICK 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 RICK?
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 RICK snapshot
As of June 29, 2026, spot at $27.45, ATM IV 68.50%, IV rank 11.50%, expected move 19.64%. The bull call spread on RICK 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 18-day expiry.
Why this bull call spread structure on RICK specifically: RICK IV at 68.50% is on the cheap side of its 1-year range, which favors premium-buying structures like a RICK bull call spread, with a market-implied 1-standard-deviation move of approximately 19.64% (roughly $5.39 on the underlying). The 18-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated RICK expiries trade a higher absolute premium for lower per-day decay. Position sizing on RICK should anchor to the underlying notional of $27.45 per share and to the trader's directional view on RICK stock.
RICK bull call spread setup
The RICK 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 RICK near $27.45, the first option leg uses a $27.45 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed RICK chain at a 18-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 RICK shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $27.45 | N/A |
| Sell 1 | Call | $28.82 | N/A |
RICK 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.
RICK bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on RICK. 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 RICK
Bull call spreads on RICK reduce the cost of a bullish RICK stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
RICK thesis for this bull call spread
The market-implied 1-standard-deviation range for RICK extends from approximately $22.06 on the downside to $32.84 on the upside. A RICK bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on RICK, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current RICK IV rank near 11.50% 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 RICK at 68.50%. As a Consumer Cyclical name, RICK options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to RICK-specific events.
RICK 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. RICK positions also carry Consumer Cyclical sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move RICK alongside the broader basket even when RICK-specific fundamentals are unchanged. Long-premium structures like a bull call spread on RICK 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 RICK chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on RICK?
- A bull call spread on RICK is the bull call spread strategy applied to RICK (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 RICK stock trading near $27.45, the strikes shown on this page are snapped to the nearest listed RICK chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are RICK 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 RICK bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 68.50%), 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 RICK bull call spread?
- The breakeven for the RICK 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 RICK market-implied 1-standard-deviation expected move is approximately 19.64%; 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 RICK?
- Bull call spreads on RICK reduce the cost of a bullish RICK 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 RICK implied volatility affect this bull call spread?
- RICK ATM IV is at 68.50% with IV rank near 11.50%, 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.